BOP Indicator Stocks Indicator Stocks Analysis Signals

BOP Indicator Stocks Indicator measures the strength of the bulls versus the bears by assessing the ability of each to push price to extremes levels.

BOP Indicator Stocks Indicator

Stock Market Balance of Power Indicator Analysis and Generating Stocks Signals

When using this Balance of market Power indicator, zero line cross overs are used to generate stocks trading signals.

Center is marked as zero line, levels oscillating above or below are used to generate signals.

Buy - The scale is marked 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 & Sell Signals with BOP Indicator Stocks Indicator

Buy Signal

When the ##Balance--of--PowerBOP crosses above zero a buy signal is given.

Also when Balance of Power Indicator Stocks Indicator is rising, the market is in an upward trend, some traders use this as a buy signal but it is best to wait for the confirmation by indicator moving above the zero mark. As this will be a buy signal in bearish territory and this type of signal is more likely to be a whipsaw fakeout.

Sell Signal

When ##Balance--of--PowerBOP crosses below zero a sell signal is given.

Also when Balance of Power Indicator Stocks Indicator is declining, the market is in a downward trend, some traders use this as a sell signal but it is 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 whipsaw fakeout.

Sell & Buy Signals - BOP Indicator Stocks Indicator

Divergence Stock Market Trading

In trading, divergences between the BOP Indicator Stocks Indicator and 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 Stocks Indicator Classic Divergence - Trend reversal signal

BOP Indicator Stocks Indicator Hidden Divergence - Trend continuation

Overbought/Oversold Conditions with Balance of Power Indicator Stocks Indicator

This Balance of Power Indicator Stocks Indicator can be used to identify potentially overbought and oversold conditions in price movement.

• BOP Indicator Stocks Indicator 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 Stocks Indicator crosses over the Zero mark.

From the example below, even though the BOP Indicator Stocks Indicator showed the price was oversold, price continued heading downwards until the indicator crossed over to above Zero.

Technical Analysis - Balance of Power Indicator Stocks Indicator