• Technical Studies Reference
• Common Study Inputs (Opens a new page)
• Using Studies (Opens a new page)

Description

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.

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.

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