The Power Balance Indicator is based on the asset's price and is used to measure the strength between buyers and sellers, assessing each side's ability to push prices to their extremes.
This representation is made by a line that fluctuates within a range of -1 to +1, calculated as follows:
Balance of Power = (Close - Open) / (High - Low)
A positive BOP indicates buyer market dominance, while a negative BOP indicates seller market dominance. When the BOP equals zero, it shows that buyers and sellers are balanced in the current market.
By default, the indicator is used with a 14-period simple moving average, but the number of periods can be adjusted to meet your technical analysis needs.
To set the desired Period and moving average type, right-click on the indicator and open the Power Balance Properties.
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