Option Alpha Docs
  • Intro to Option Alpha
  • TOOLS
    • Bots
      • Creating a Bot
      • Safeguards
      • Automation Basics
      • Using Loops
      • Decisions
      • Automated Trades
      • SmartPricing
      • Exit Options
      • Using Tags
      • Using Inputs
      • Automation Scheduling
      • Bot Logs
      • Templates and Cloning
      • Managing Positions
      • Autotrading Best Practices
    • Trade Ideas
      • Manual Trading
    • 0DTE Oracle
    • Earnings Edge
    • Settings
      • Webhooks
      • Live Trading
        • Connecting to Tradier
        • Connecting to tastytrade
        • Connecting to TradeStation
        • Connecting to Schwab
  • PLATFORM
    • Infrastructure & Security
    • Automations
      • Automation Behavior
    • Data Feeds
    • Order Handling
    • Bot Limitations
    • Supported Ticker Symbols
      • Supported Browsers
      • Supported Countries
    • Ex Dividend & Earnings Dates
    • Troubleshooting
      • Testing Automations
      • Broker Rejection Errors
        • Invalid Authorization
        • Overlapping Strikes Failsafe
        • Duplicate Orders Error
      • Capital Warnings
      • Position Limit Warnings
      • Trade Enforcements
      • Pricing Anomaly Warning
      • Missing or Invalid Input
      • Daily Symbol Limit Error
      • Excessive Errors Failsafe
      • Bot Event Loops
      • Option & Expiration Availability
  • Calculations
    • Profit and Loss
    • Decision Properties
    • Decision Calculations
    • Parameter Selection
    • Probability
      • Probability Theory
      • Understanding Alpha and Expected Value
    • Indicators
      • ADX
      • ATR
      • BOLLINGER BANDS
      • BOP
      • CCI
      • CMO
      • DX
      • EMA
      • KAMA
      • MACD
      • MFI
      • MOM
      • ROC
      • RSI
      • SMA
      • STOCH
      • Stoch RSI
      • TRIMA
      • ULTIMATE OSCILLATOR
      • WILLIAMS %R
  • Resources
    • 'Fast Track' Video Series
    • Live & On-Demand Events
    • Videos
    • Education
    • Blog
    • Podcast
Powered by GitBook
On this page

Was this helpful?

  1. Calculations
  2. Indicators

BOP

Overview of the Balance of Power calculation.

PreviousBOLLINGER BANDSNextCCI

Last updated 6 months ago

Was this helpful?

The Balance of Power indicator (BOP) measures the strength of buyers have to push prices higher against the power of sellers to move prices lower. When the indicator is in positive territory, the bulls are in charge; and conversely, the sellers control price when the indicator is negative. A reading near the zero line indicates a balance between the two and a possible trend reversal.

  /* BOP = (Close - Open)/(High - Low) */

The source code for the BOP function is available . Some trading platforms offer a version of BOP with a moving average added and others do not. We offer Balance of Power exactly as TA-Lib provides without a moving average. As a result, when using BOP inside of your bots, there will be no difference in the value provided when assessing different lookback intervals.

here