How to Set MetaTrader 4 Balance of Power Indicators in MetaTrader 4 Chart
Step 1: Open MetaTrader 4 Navigator Panel
Open MetaTrader 4 Navigator window like is displayed & shown on example put on display below: Go to the 'View' menu (press), then select the 'Navigator' window (press), or From Standard ToolBar click 'Navigator' button or press key board MetaTrader 4 short-cut keys 'Ctrl+N'
In MetaTrader 4 Navigator window, choose and select "Indicators", by Double Clicking
How Do I Use MetaTrader 4 BOP Indicator on the MT4 Platform?
How to Add Balance of Power MT4 Indicator
Expand the menu by pressing the protract(+) tool/button marker "+" or doubleclick the 'indicators' menu, after that this specified button will appear and be shown as (-) and will now show a list of MT4 indicators like as displayed & shown on example below - select & choose the Balance of Power from this list of MT4 indicators so that as you as a trader can add the Balance of Power MetaTrader 4 indicator in MT4 chart.
How Do I Use MT4 Balance of Power (BOP) Indicator in MetaTrader 4 Platform Software?
How Install and Add Custom Balance of Power in the MT4?
If the MetaTrader 4 indicator that you want to add in the MT4 charts is a custom MT4 indicator - for example if the Balance of Power that you want to add is a custom MetaTrader 4 indicator you'll need to first add this custom Balance of Power MetaTrader 4 indicator in MT4 software & then compile custom Balance of Power so that as the newly added Balance of Power MetaTrader 4 custom technical indicator pops up on the list of custom technical indicators in Meta Trader 4.
To learn how to add Balance of Power indicators on MT4 Platform - how do you place Balance of Power window to MT4 software? - how do you place Balance of Power custom indicator in the MT4? - How to add a custom Balance of Power custom indicator in MetaTrader 4 Platform.
How Do You Use Balance of Power MT4 Indicator?
Balance of Power Analysis Buy & Sell Signals
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 Set MetaTrader 4 Balance of Power Indicators in MetaTrader 4 Chart
How to Generate Buy & Sell Signals
When using Balance of Power(BOP) trading indicator, the zero centerline line crossover are used to generate signals.
The center is labeled and marked as the zero line - Balance of Power levels oscillating above/below this center line are used to generate signals.
Buy Trading Signal - The Balance of Power scale is tagged from Zero to +100 for bullish price movements
Sell Signal - The Balance of Power scale is tagged from Zero to -100 for bearish price movements
How to Generate Buy and Sell Signals
Buy Signal
When the Balance of Power crosses above zero a buy signal is generated.
Also when Balance of Power is rising and moving upwards, the trend is in an upward trend - some traders use this as a buy trading signal but it's best to wait for the confirmation signal - Balance of Power moving above zero mark. As this will be a buy signal in bearish territory and this type of market trading signal is more likely to be a whipsaw fakeout.
Sell Signal
When the Balance of Power crosses below zero center-line mark - a sell signal is generated.
Also when Balance of Power is declining- the trend 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 Balance of Power 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 whipsaw.
How Do I Use MT4 Balance of Power (BOP) Indicator in the MT4 Platform?
Divergence Trading Setup Signals
In trading, divergences between the Balance of Power and price can be used to effectively spotting potential reversal and/or trend continuation trade signal. There are several types of Balance of Power divergences:
Classic Trade Divergence Setup
Hidden Divergence
Forex Over-bought Over-sold Levels
Balance of Power can be used to identify the potentially overbought and over-sold levels in price movement.
- Overbought & Oversold levels can be used to provide an early warning for potential trend reversals.
- These overbought over-sold levels are derived & generated when the Balance of Power clusters its tops and bottoms thus setting up the over-bought and oversold levels around those values.
However, price might also stay at these over-bought and oversold levels and continue heading in that particular trend direction for some length of time while and thus its always good to wait until for Balance of Power crossover signals using the zero center-line mark.
From the Balance of Power example put on display below, though the Balance of Power showed the price was oversold - price continued moving in a downwards trend until the Balance of Power crossed over to above Zero center-line mark.
How Do I Use MT4 Balance of Power(BOP) Indicator in the MT4?
How Do I Use MetaTrader 4 BOP Technical Indicator on the MT4 Platform?
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