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.

How Do I Place Balance of Power Indicator in Chart in Software?

BOP Indicator Stocks Indicator

Stock Market Balance of Power Indicator Analysis and Generating Stocks Signals

When using this Balance of market Power technical 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 trading 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 Trade Signal

When the Balance of Power crosses above the zero mark 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 Trade Signal

When Balance of Power crosses below the zero a sell trade 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.

Balance of Power Stocks Trading Indicator - BOP Stock Indicator Technical Analysis

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 over-sold 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 over-sold levels around those values.

However, price may also stay at these overbought and oversold levels and continue heading in that particular 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 moving downwards until the trading indicator crossed over to above Zero.

Balance of Power Stocks Technical Indicator - Technical Analysis BOP Stock Buy Sell Signals

Technical Analysis - Balance of Power Indicator Stocks Indicator

Get More Topics and Courses:

Trade Forex Trading