Balance Of Power

Balance Of Power measures, for each individual bar, how much of that bar's total range the closing move actually captured: (Close-Open) divided by (High-Low). A bar that closes at its high after opening at its low scores close to +1 - buyers controlled the entire range. A bar that closes at its low after opening at its high scores close to -1 - sellers took it. A doji-like bar with a small body relative to its range sits near zero either way. The raw per-bar value is naturally noisy, since every single bar produces an independent reading with no memory of prior bars. A simple moving average of the raw values is plotted alongside it to show the underlying trend in buyer/seller control rather than reading the single-bar noise directly. A bar with zero high-low range (a flat print, most often from a thin data feed or a gap) has no defined ratio; this implementation treats that case as zero force for that bar rather than raising a division error, and says so here rather than leaving it undocumented. Notes and limitations - A zero high-low range bar is scored as zero force rather than producing an undefined result - a documented simplification, not the published formula's literal behaviour on that edge case (which is itself undefined). - Needs InpSmoothPeriod + 1 bars of history before the smoothed line starts drawing; the raw histogram plots from the first available bar. - This is an oscillator only - no alerts, no trade signals.

Indicator · MT4 · v1.0 · Free

Tags: Candlestick Patterns · MT4 Indicator · MQL4 Source Code

MetaTrader 4 & 5 indicators · PolyMaria