How to Add Balance of Power Indicator on MT4 Charts - Adding MT4 Balance of Power Indicator
Step 1: Open Navigator Window on FX Trading Platform
Open Navigator panel as shown and illustrated below: Go to 'View' menu (click on it), then select 'Navigator' panel (click), or From Standard Tool-Bar click 'Navigator' button or press keyboard short cut keys 'Ctrl+N'
On Navigator window, choose 'Indicators', (Double Click)
How Do You Add Balance of Power Indicator on MT4 - MT4 Balance of Power Indicator
Step 2: Expand the Indicators Menu on the Navigator - Adding Balance of Power MT4 Indicator
Expand the menu by clicking the expand button marker (+) or double click the 'indicators' menu, after this the button will appear as (-) and will now display a list as shown below - select the Balance of Power chart indicator from this list of indicators so as to add the Balance of Power indicator on the chart.
How Do I Add Balance of Power Indicator - From the Above window you can then place Balance of Power indicator that you want on the chart
How to Add Custom Balance of Power Indicator to MetaTrader 4
If the indicator you want to add is a custom indicator - for example if the Balance of Power indicator you want to add is a custom indicator you will need to first add this custom Balance of Power indicator on the MT4 platform & then compile custom Balance of Power indicator so that the newly added Balance of Power custom indicator pops up on the list of custom indicators on MT4 software.
To learn how to install Balance of Power indicators on MT4, how to add Balance of Power indicator window to MT4 and how to add Balance of Power custom indicator in MT4 - How to add a custom Balance of Power indicator in MT4.
About Balance of Power Indicator Guide
Balance of Power Analysis & BOP Signals
Created by Igor Livshin
BOP indicator measures the strength of the bulls versus the bears by assessing ability of each to push price to extreme levels.
Forex Analysis and How to Generate Signals
When using this trading indicator, the zero line cross-overs are used to generate signals.
Center is marked as zero line, levels oscillating above or below are used to generate 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 & Sell FX Signals
Buy Signal
When the BOP crosses above zero a buy signal is given.
Also when the BOP is rising, the market is in an upward trend, some traders use this as a buy signal but it's best to wait for the confirmation by indicator moving above 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 BOP crosses below zero a sell signal is given.
Also when the BOP is declining, the market is in a downwards 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 and this type of signal is more likely to be a fake out.
Sell & Buy Signals
FX Divergence Trading
In trading, divergences between the BOP and price can be used to effectively spotting potential reversal &/or trend continuation points in currency movement. There are different types of divergences:
Classic Divergence - Trend reversal signal
Hidden Divergence - Trend continuation
Forex Overbought Oversold Conditions
This BOP can be used to identify potentially overbought and oversold conditions in price movement.
- Overbought-Oversold levels can be used to provide an early signal for potential trend reversals.
- These levels are generated when indicator clusters its tops & bottoms thus setting up the overbought & oversold levels around those values.
However, price might also stay at these overbought and oversold levels & continue moving in that direction for a while & thus its always good to wait until the BOP crosses over the Zero mark.
From the example below, though the BOP showed the price was oversold, price continued heading downwards until the indicator crossed over to above Zero.
Analysis in Forex Trading
