MarketStrength.BalanceOfPowerOverPeriod Method

Evaluates the Balance of Power (BOP) indicator, created by Igor Livshin; which captures the struggle between the Bulls and Bears over a number of trading periods.

public double[] BalanceOfPowerOverPeriod(
   double[] open,
   double[] close,
   double[] high,
   double[] low
);

Parameters

open: An array of length equal to the number of periods considered in the indicator evaluation where the first element is the opening price in the last trading period, the second term is the opening price in the previous trading period and so on.
close: An array of length equal to the number of periods considered in the indicator evaluation where the first element is the closing price in the last trading period, the second term is the closing price in the previous trading period and so on.
high: An array of length equal to the number of periods considered in the indicator evaluation where the first element is the high in the last trading period, the second term is the high in the previous period and so on.
low: An array of length equal to the number of periods considered in the indicator evaluation where the first element is the low in the last trading period, the second term is the low in the previous period and so on.

Return Value

An array is returned where the first term corresponds to the BOP of the last trading period, the second term gives the BOP on the previous trading period and so on.

Remarks

An array is returned where the first term corresponds to the BOP of the last trading period, the second term gives the BOP on the previous trading period and so on.

Interpretation

The BOP indicator for each trading period lies within the range [-1,1]. When the BOP indicator is towards the high if its range it will signifies that the Bulls are in control, conversely when the indicator is towards the lows of its range it signifies that the bear are in control. If the indicator move from a high positive range to a lower positive range it signifies that the buying pressure is decreasing. Conversely, if the indicator move from a low negative range to a higher negative range it signifies that the selling pressure is decreasing.

Evaluation

The BOP indicator for each trading periods is evaluated by the following formulae:

BOP = (Close - Open)/(High - Low),

where Close is the periods closing price, Open is the periods opening price, High is the highest traded price during the period and Low is the lowest traded price during the period.

Exceptions

Exception Type	Condition
ArgumentException	Thrown if any elements from the arrays high, low, close or open are strictly negative, or if the length of these arrays are not equal.