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 & illustrated below: Go to 'View' menu (click on it), then select 'Navigator' panel window (click), or From Standard ToolBar click 'Navigator' button or press key board short cut keys 'Ctrl+N'

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

How Do I Add Balance of Power in MT4 Platform Software? - How Do I Use Balance of Power Indicator?

How Do You Add Balance of Power on the MT4 Software - MT4 Balance of Power Indicator

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

Expand this menu by pressing the open(+) button/tool target "+" or doubleclick the 'indicators' menu, afterwards the button will appear and be shown as (-) & will now display a list as is shown below - select the Balance of Power chart indicator from this list of indicators so that to add the Balance of Power on the chart.

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

How Do I Add Balance of Power - From the Above window you as a trader can then place Balance of Power that you want on 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 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 indicator pops up on the list of custom indicators on MetaTrader 4 software.

To learn how to install Balance of Power indicators in MT4 Platform, how to add Balance of Power panel to MT4 and how to add Balance of Power custom indicator in the MT4 - How to add a custom Balance of Power on MT4.

About Balance of Power Guide Lesson

Balance of Power 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

When using this indicator, the zero line crossovers are used to generate trading signals.

Center is labeled and marked as zero line, levels oscillating above/below are used to generate trade signals.

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

When the Balance of Power BOP crosses above zero mark a buy signal is given/generated.

Also when the Balance of Power (BOP) is rising, the market is in an upward trend, some traders use this as a buy trade signal but it is best to wait for the confirmation by indicator moving above zero mark. As this will be a buy trading signal in bearish territory and this type of market trading signal is more likely to be a whipsaw fakeout.

Sell Signal

When Balance of Power (BOP) crosses below the zero a sell trade signal is given/generated.

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 territory and this type of market trading signal is more likely to be a fake out.

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

In trading, divergences between the BOP and price can be used to effectively spotting potential reversal and/or trend continuation points in the currency movement. There are different types of divergences:

Classic Divergence Trading Setup - Trend reversal signal

Hidden Divergence Setup - Trend continuation

Forex Overbought Over-sold Conditions

This BOP can be used to identify the potentially overbought & over-sold conditions in price movement.

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

However, price might also stay at these over-bought and oversold levels & continue heading in that particular direction for quite a while & thus its always good to wait until Balance of Power. BOP crosses over the Zero line mark.

From the illustration set-out below, though the Balance of Power BOP showed the price was oversold, price continued going downwards until the indicator crossed over and above Zero line mark.

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