BOP Indicator Analysis & Indicator Signals
BOP Indicator MT4 Indicators Analysis measures the strength of the bulls versus the bears by assessing the ability of each to push price to extreme levels.
BOP Indicator Meta Trader 4 Indicators Analysis
Balance of Power Indicator MT4 Indicators Analysis Signals
When using this Balance of market Power indicator, the zero line cross overs are used to generate signals.
Center is marked as the zero line, levels oscillating above or below are used to generate trading signals.
Buy - The scale is labeled from 0 to +100 for bullish market movements
Sell - The scale is marked from Zero to -100 for bearish market movements
How to Generate Buy and Sell Signals with BOP MT4 Indicator
Buy Signal
When the BOP crosses above zero a buy signal is given.
Also when BOP Technical Indicator MT4 Indicators Analysis is rising, the market is in an upwards trend, some traders use this as a buy signal but it's best to wait for the confirmation by the indicator moving above the zero mark. As this will be a buy signal in bearish territory & this type of signal is more likely to be a fake out.
Sell Signal
When BOP crosses below zero a sell signal is given.
Also when BOP Technical Indicator MT4 Indicators Analysis is declining, the market is in a downward trend, some traders use this as a sell signal but it's best to wait for a confirmation by moving below zero mark because this will be a sell signal in bullish territory & this type of signal is more likely to be a fake out.
Sell and Buy Signals - BOP Indicator Meta Trader 4 Indicators Analysis
Divergence Forex
In trading, divergences between the BOP Indicator MT4 Indicators Analysis & price can be used to effectively spotting potential reversal and/or trend continuation points in currency movement. There are different types of divergences:
BOP Indicator MetaTrader 4 Indicators Analysis Classic Divergence - Trend reversal signal
BOP Indicator MT4 Indicators Analysis Hidden Divergence - Trend continuation
Trading Overbought/Oversold Conditions with Balance of Power Indicator MT4
This BOP Indicator MetaTrader 4 Indicators Analysis can be used to identify potentially overbought and oversold conditions in price movement.
- BOP Indicator MetaTrader 4 Indicators Analysis Overbought/Oversold levels can be used to provide an early warning for potential trend reversals.
- These levels are generated when indicator clusters its tops & bottoms thus setting up the overbought and oversold levels around those values.
However, price may also stay at these overbought and oversold levels and continue moving in that direction for a while and thus its always good to wait until the Balance of Power Indicator MT4 Indicators Analysis crosses over the Zero mark.
From the example below, even though the BOP Indicator MetaTrader 4 Indicators Analysis showed the price was oversold, price continued heading downwards until the indicator crossed over to above Zero.
Analysis - Balance of Power Indicator Meta Trader 4 Indicators Analysis
