# 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 $$t \geq n - 1$$