Login Page - Create Account

Technical Studies Reference


Balance of Power

This study calculates and displays the Balance of Power of the Price data, as well as a Moving Average of the Balance of Power.

Let \(O\), \(H\), \(L\), and \(C\) be random variables denoting the Open, High, Low, and Close Prices, respectively, and let \(O_t\), \(H_t\), \(L_t\), and \(C_t\) be their respective values at Index \(t\). Let the Input Moving Average Length be denoted as \(n\). Then we denote the Balance of Power at Index \(t\) as \(BOP_t\), and we calculate it for \(t \geq 0\) as follows.

\(\displaystyle{BOP_t = \frac{C_t - O_t}{H_t - L_t}}\)

We denote the Average Balance of Power at Index \(t\) as \(\overline{BOP}_t(n)\), and we compute it in terms of a Simple Moving Average for \(t \geq n - 1\) as follows.

\(\overline{BOP}_t(n) = SMA_t(BOP,n)\)

The Subgraphs of both \(BOP_t\) and \(\overline{BOP}_t(n)\) are displayed for \(t \geq n - 1\)

Inputs

Spreadsheet

The spreadsheet below contains the formulas for this study in Spreadsheet format. Save this Spreadsheet to the Data Files Folder.

Open it through File >> Open Spreadsheet.

Balance_Of_Power.417.scss


*Last modified Thursday, 13th June, 2019.