# Balance of Power (BoP)

> The Balance of Power (BOP) indicator measures the pressure balance of buyers and sellers. It is used to identify trend changes in Veles bots.

The Balance of Power (BOP) is an oscillator that assesses who currently has more control over the market — buyers or sellers.
It analyzes price changes within a candle, showing which side was able to push the price to extremes.

## How the Balance of Power Works

The indicator values range from -1 to +1:

- **BOP > 0** — buyers dominate (signal of an increase, possible long entry).
- **BOP < 0** — sellers dominate (signal of a decrease, possible short entry).
- **Crossing level 0** — indicates a trend change.

## How to apply in Veles bots (Standard Indicator)

- If **Balance of Power > 0**, this may serve as a signal:
	- to open a **long** deal,
	- to close a **short** deal.
- If **Balance of Power < 0**, this may serve as a signal:
	- to open a **short** deal,
	- to close a **long** deal.

💡 The indicator is often used to confirm signals from other technical analysis tools (for example, [RSI](https://help.veles.finance/en/filters/rsi/) or [MACD](https://help.veles.finance/en/filters/macd/)).
It helps avoid false entries and better identify real reversals.

## Using in Veles Bots (Flexible Indicator)

Available settings:

- Interval - the candle timeframe.
- Method - the calculation type. By bar close (only on the selected interval) or by minute (once per minute for any interval).
- Shift - shifts the requested indicator value back by the specified number of candles.

## Limitations

- Like most oscillators, BOP works best in sideways or calm markets.
- During a strong trend, the indicator can "hang" above or below 0 for long periods, not providing clear signals.
- For reliability, it is recommended to combine BOP with trend indicators.

## Summary

The Balance of Power indicator provides a direct view of buyer/seller dominance within individual candles. While it generates unreliable signals during strong trends, it works effectively as a confirmation filter alongside trend indicators like MACD or Moving Averages in Veles bots.