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.

Balance of Power Indicator - MetaTrader 4 Balance of Market Power Indicator Signals

BOP MetaTrader 4 Indicator

Balance of Power MetaTrader 4 Indicator Analysis & How to Generate Signals

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

Center is marked as zero line, levels oscillating above or below are used to generate trade 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 Trading Signal

When the Balance of Power BOP indicator crosses above the zero a buy trading 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 Trade Signal

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

Also when the Balance of Power MetaTrader 4 Trading 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.

MT4 Balance of Market Power Indicator Signals - How to Analyze Indicator Buy Signal & Sell Signal

Sell and Buy Trade 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 various 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 over-sold 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 & over-sold levels around those values.

However, price may also stay at these over bought 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 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 technical indicator crossed over to above Zero.

Balance of Power Meta Trader 4 Indicator Analysis - MT4 Balance of Market Power Indicator Signals

Technical Analysis - Balance of Power MetaTrader 4 Indicator

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