Balance of Power is an oscillator that measures the strength of buying and selling pressure by looking at how much the price has changed.
This indicator compares the ability of buyers to push the price up to higher extremes with the ability of sellers to push the price down to lower extremes.
The indicator takes values between -1 and +1: when the indicator is greater than zero, buyers are considered to be dominant, when the indicator is below zero, sellers are dominant.
When the indicator crosses the zero level, it indicates a change of trend.
If the “Balance of Power” is greater than 0, this may be a signal to open a deal in Long or close a Short deal.
If the “Balance of Power” is less than 0, this may be a signal to open a Short deal or close a Long deal.
