How to Set Balance of Power on MetaTrader 4 Charts - Adding MT4 Balance of Power Indicator

Step 1: Open Navigator Window/Panel on Forex Trade Platform

Open the Navigator panel just as shown: Go to 'View' menu (click on it), then select 'Navigator' panel window (press), or From Standard ToolBar click 'Navigator' button or press key board short cut keys 'Ctrl+N'

On Navigator window, choose & select 'Technical Indicators', (Double Click)

How Do I Add Balance of Power in MetaTrader 4 Software? - How Do I Use Balance of Power Indicator?

How to Add Balance of Power Indicator on MT4 Software - MT4 Balance of Power Indicator

Step 2: Expand the Indicators Menu on the Navigator - Adding Balance of Power MT4 Indicator

Click the open button or double-click the indicators menu to expand it. The button changes to a minus sign. It shows a list below. Pick the Balance of Power indicator to add it to your chart.

How to Set Balance of Power on a Chart - How to Set Balance of Power in MetaTrader 4 Charts

How Do I Incorporate Balance of Power - From the window displayed above, you are then able to position the Balance of Power feature you desire onto the chart.

How to Set Custom Balance of Power to MT4

If the indicator you want to add is a custom indicator - for example if the Balance of Power(BOP) you want to add is a custom indicator you'll need to first add this custom Balance of Power on the MetaTrader 4 software & then compile custom Balance of Power so that as the newly added Balance of Power custom technical indicator pops up on the list of custom technical indicators on MetaTrader 4 software.

Learn to install the Balance of Power indicator on MT4. This guide shows how to add the panel and custom Balance of Power indicator. See how to add a custom one on MT4.

About Balance of Power Guide Lesson

Balance of Power(BOP) Analysis and BOP Signals

Created and Developed by Igor Livshin

Balance of Power BOP indicator measures the momentum of the bulls vs the bears by assessing the capability of each to push price to extreme points.

How to Use Balance of Power - How Do You Set Balance of Power in MT4 Charts?

FX Analysis and How to Generate Trading Signals

This Tool Uses Zero Line Crosses to Spot Trade Signals.

Trade signals are generated by recognizing levels oscillating above or below the centerline labeled zero in relevant indicators.

Buy - The scale is labeled from 0 to +100 for bullish movements

Sell - The scale is marked and tagged from Zero to -100 for bearish movements

How to Generate Buy & Sell FX Signals

Buy Trading Signal

A buy indication is issued or created when the Balance of Power BOP moves above the level of zero.

When Balance of Power rises, the market heads up. Some traders buy right then. But wait for it to cross zero for a solid signal. Buying below zero risks fakeouts in down markets.

Sell Signal

When the Balance of Power (BOP) indicator drops beneath the zero line, this indicates a sell trade trigger has been established.

Also when the Balance of Power(BOP) is declining/falling, the market is in a downwards trend, some traders use this as a sell trading signal but it's best to wait for a confirmation signal by moving below the zero mark because this will be a sell signal in bullish region and this type of market trading signal is more likely to be a whipsaw.

How to Set Balance of Power on MetaTrader 4 Charts - How to Add Balance of Power on a Chart

Sell & Buy Trading Signals

Forex Divergence Trading

Divergences observed between the Balance of Power (BOP) indicator and the asset's price can be instrumental for accurately detecting potential trend reversals or continuations in currency movements. Various types of divergences exist:

Classic Divergence Trading Setup - Trend reversal signal

Hidden Divergence Setup - Trend continuation

Forex Overbought Over-sold Conditions

This BOP can be utilized to pinpoint instances where price action might be experiencing potentially excessive buying or selling pressure.

Overbought Oversold levels can be used to provide an early warning for potential trend reversals.
These levels are derived & generated when technical indicator clusters its tops & bottoms thus setting up the over-bought & oversold levels around those values.

While price levels often remain at overbought or oversold states for extended periods, it's advisable to act when the Balance of Power (BOP) indicator crosses above or below the zero line to signal directional shifts.

From the illustration below, although the Balance of Power (BOP) indicated that the price was oversold, the price continued to decline until the indicator crossed above the zero line.

How Do You Use Balance of Power Indicator? - How Do You Set Balance of Power on MT4 Charts?

Analysis in FX Trading

Study More Tutorials & Topics:

Trade Forex Trading