bop

Balance of Power, introduced by Igor Livshin, attempts to measure the strength of buyers vs. sellers by assessing the ability of each to push price to an extreme level. Livshin published this indicator in the August 2001 issue of Stocks and Commodities Magazine. The article describes a somewhat involved calculation of the BOP, but in essence, BOP calculates raw values for each bar as:

(CLOSE- OPEN) / (HIGH - LOW)

The resulting raw BOP values can be optionally smoothed using any moving average type and drawn as a line or histogram.