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Saturday, June 20, 2009

Balance of Power and Buy/Sell Pressure

Power Volume Indicators

Balance of Power, BOP

Balance of power is not a power volume indicator. Nonetheless, I classified it here, to avoid an excessively short post for a relatively simple indicator

BOP = (Close – Open)/(High – Low)

Users typically use the BOP indicator by smoothing it with a moving average.

Other References

BuySell Pressure, BSP

Buy Pressure = Buy Volume / (Buy Volume + Sell Volume) x 100

Sell Pressure = Sell Volume / (Buy Volume + Sell Volume ) x 100

, where Current Buy Volume = Last Buy Volume + Current Traded Volume
if Current Traded Price >= Current Ask Price

, where Current Sell Volume = Last Sell Volume + Current Traded Volume
If Current Traded Price <= Current Bid Price

Trades executed between the bid and ask prices are ignored.

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