How to Set MetaTrader 5 Balance of Power on MetaTrader 5 Charts
Step 1: Open MT5 Navigator Panel
Open MT5 Navigator panel as presented on the MT5 illustration put on display below: Go to the 'View' menu (click), then select the 'Navigator' window panel (click), or From Standard Toolbar click 'Navigator' button or press key board MetaTrader 5 shortcut keys 'Ctrl+N'
On MT5 Navigator window, choose and select "Indicators", by DoubleClick
How Do You Use MT5 BOP Indicator on MetaTrader 5 Software Platform?
How to Add Balance of Power MT5 Indicator
Expand this menu by clicking the magnify button '+' or double-click the 'indicators' menu, afterwards this particular button will be shown as (-) & will now display MetaTrader 5 indicators list as presented on the MT5 illustration below - select the Balance of Power from this list of MT5 indicators so that as you as a trader can add the Balance of Power MT5 indicator in the MT5 chart.
How Do You Use MT5 BOP Indicator on MetaTrader 5 Software Platform?
How to Add Custom Balance of Power on the MT5 Software
If the MT5 indicator that you want to add in the MetaTrader 5 charts is a custom MT5 indicator - for example if the Balance of Power that you want to add is a custom MetaTrader 5 indicator you will need to first add this custom Balance of Power MT5 indicator in the MetaTrader 5 software and then compile the custom Balance of Power so that as the newly added Balance of Power MT5 custom indicator pops up on the list of custom indicators in the MetaTrader 5 software.
To learn how to add Balance of Power indicators on MT5 software - how do you place Balance of Power panel to MT5 software? - how do you place Balance of Power custom indicator on MetaTrader 5 software? - How to add custom Balance of Power custom indicator on MetaTrader 5 Platform Software.
How Do You Use Balance of Power MT5 Indicator?
BOP Indicator Analysis Buy and Sell Signals
Developed by Igor Livshin
Balance of Power BOP gauges the momentum of the bulls vs the bears by assessing the capability of each to push price to extremes zones.
How to Set MetaTrader 5 Balance of Power on MetaTrader 5 Charts
How to Generate Buy & Sell Signals
When using (BOP) trading indicator, the zero centerline line crossovers are used to generate trade 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 trade signals.
Buy Trading Signal - The Balance of Power(BOP) scale is tagged from Zero to +100 for bullish price movements
Sell Signal - The Balance of Power (BOP) scale is tagged from Zero to -100 for bearish price movements
How to Generate Buy & Sell Signals
FX Buy Trading Signal
When the (BOP) crosses above zero a buy trade signal is generated.
Also when Balance of Power is rising & 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 - BOP moving above the 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 fake out.
Forex Sell Signal
When the (BOP) crosses below the zero center-line mark - a sell trade signal is generated.
Also when Balance of Power is declining- the trend is in a downward trend - some traders use this as a sell signal but it's best to wait for a confirmation signal by BOP moving below zero mark because this will be a sell trading signal in bullish territory and this type of market trading signal is more likely to be a whipsaw.
How Do You Use MT5 BOP Indicator in the MT5?
Divergence Trading Setup Signals
In trading forex, divergences between the BOP indicator & price can be used to effectively spotting potential reversal and/or trend continuation trade signal. There are several types of Balance of Power (BOP) divergences:
Classic Divergence Setup
Hidden Trade Divergence Trading Setup
Trading Overbought Oversold Levels
BOP can be used to identify the potentially overbought & oversold levels in price movement.
- Overbought and Over-sold 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(BOP) clusters its tops & bottoms thus setting up the overbought & over-sold levels around those values.
However, price might also stay at these overbought & oversold levels & continue heading in that particular trend direction for a duration of quite some time and thus its always good to wait until for Balance of Power cross over signals using zero center line mark.
From the Balance of Power example set-out below, even though the Balance of Power showed the price was oversold - price continued moving in a downward trend until the Balance of Power crossed over to above Zero center-line mark.
How Do You Use MT5 BOP Indicator on the MT5 Platform?
How Do You Use MT5 BOP Indicator in MetaTrader 5 Platform Software?
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