BOP Meta Trader 4 Analysis Signals
Created by Igor Livshin
BOP MetaTrader 4 Indicator measures the strength of the bulls versus the bears by assessing the ability of each to push price to extremes areas.
BOP MetaTrader 4 Indicator
Balance of Power MetaTrader 4 Indicator Analysis & How to Generate Signals
When using this Balance of market Power indicator, the zero line cross overs are used to generate signals.
Center is marked as zero line, areas oscillating above or below are used to generate signals.
Buy - The scale is marked from 0 to +100 for bullish trend market movements
Sell - The scale is marked from Zero to -100 for bearish market movements
How to Generate Buy & Sell Signals with Balance of Power MetaTrader 4 Indicator
Buy Signal
When the BOP indicator crosses above zero a buy signal is given.
Also when the Balance of Power MetaTrader 4 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 the technical 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.
Sell Signal
When ##Balance--of--PowerBOP crosses below zero a sell signal is given.
Also when the Balance of Power MetaTrader 4 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 fake out.
Sell and Buy Signals - BOP MetaTrader 4 Indicator
Divergence FX Trading
In forex trading, divergences between the Balance of Power MetaTrader 4 Indicator & price can be used to effectively spotting potential reversal and/or trend continuation points in currency movement. There are several types of divergences:
BOP MetaTrader 4 Indicator Classic Divergence - Trend reversal signal
BOP MetaTrader 4 Indicator Hidden Divergence - Trend continuation
Overbought Oversold Conditions with Balance of Power MT4 Indicator
This Balance of Power MetaTrader 4 Indicator can be used to identify potentially overbought and oversold conditions in price movement.
- BOP MetaTrader 4 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 and bottoms thus setting up the overbought & oversold levels around those values.
However, price may also stay at these over bought and oversold levels and continue moving in that direction for a while and thus its always good to wait until the Balance of Power MetaTrader 4 Indicator crosses over the Zero mark.
From the example below, even though the Balance of Power MetaTrader 4 Indicator showed the price was oversold, price continued heading downward until the indicator crossed over to above Zero.
Technical Analysis - ##Balance--of--PowerBOP MetaTrader 4 Indicator
