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Balance of Power (BOP)

What Is the Balance of Power? An oscillator called the Balance of Power (BOP) gauges how much pressure there is to purchase and sell. In the August 2001 issue of Technical Analysis of Stocks & Commodities magazine, Igor Levshin introduced this indicator, which contrasts the ability of sellers to drive prices to lower extremes with the ability of purchasers to drive prices to higher extremes. Bulls are in control when the indicator is in positive area, while sellers are in control when it is in negative territory. A value close to the zero line suggests equilibrium between the two and may signal a reversal of the trend. Note: This indicator is sometimes referred to as the Balance of Market Power (BMP). Calculation Livshin's original calculation method for…

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