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Balance of Power for Amibroker (AFL)

Rating:
5 / 5 (Votes 1)
Tags:
oscillator, amibroker

The balance of power (BOP) indicator measures the strength of the bulls vs. bears by assessing the ability of each to push price to an extreme level.

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Indicator / Formula

Copy & Paste Friendly
_SECTION_BEGIN("test 3");
// Balance of Power
// Example code can be found at:
// http://www.traders.com/Documentation/FEEDbk_docs/Archive/082001/TradersTips/TradersTips.html 

//----- This prevents a bad data point from generating a divide by zero.
THL = IIf(H != L, H - L, 0.01);

//----- Reward based on Open
BullOpen = (H - O)/THL;
BearOpen = (O - L)/THL;

//----- Reward based on Close
BullClose = (C - L)/THL;
BearClose = (H - C)/THL;

//----- Reward based on Open - Close
BullOC =IIf(C > O, (C - O)/THL, 0);
BearOC =IIf(O > C, (O - C)/THL, 0);
BullReward = (BullOpen + BullClose + BullOC)/3;
BearReward = (BearOpen + BearClose + BearOC)/3;

BOP = BullReward - BearReward;

Period1 = 34;
SmoothBOP = EMA(BOP, Period1);

Period2 = 34;
SmootherBOP = TEMA(SmoothBOP, Period2);

//Plot(BOP, "BOP", colorBlack, 1);
Plot(SmoothBOP, "BOP " + Period1, colorLightBlue, 1);
Plot(SmootherBOP, "", colorRed);
Plot(Ref(SmootherBOP, -2), "", colorBlue);
Plot(0.1, "", colorGreen);
Plot(0, "", colorBlack);
Plot(-0.1, "", colorGreen);
_SECTION_END();

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