BOP (Balance of Power)

Indicator Description

BOP (Balance of Power) is a momentum indicator that measures the balance of power between buyers and sellers by comparing the relationship between the closing price and opening price, as well as the high and low prices.

Function Information

• Function Name: BOP
• Input Parameters:
  • Open: Opening price
  • High: High price
  • Low: Low price
  • Close: Closing price
• Parameter Settings: None
• Output: BOP value

Calculation Principle

BOP is calculated using the following formula:

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

Where:

• Close is the closing price
• Open is the opening price
• High is the high price
• Low is the low price

Usage Scenarios

1. Buyer and Seller Power Analysis
2. Price Momentum Assessment
3. Trading Signal Generation
4. Market State Analysis

Usage Recommendations

1. BOP > 0 indicates buyer dominance
2. BOP < 0 indicates seller dominance
3. Watch for zero-line crossovers
4. Pay attention to market environment changes