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Balance of Market Power
Source: https://fxcodebase.com/code/viewtopic.php?f=17&t=23534
Forum: 17 · Topic 23534 · 8 post(s)
Balance of Market Power
Apprentice · Tue Sep 18, 2012 5:20 am
The Balance of Market Power indicator, presented by Igor Livshin in his article “Balance of Market Power”.
Re: Balance of Market Power
Alexander.Gettinger · Mon Nov 17, 2014 4:53 pm
MQL4 version of Balance of Market Power oscillator: viewtopic.php?f=38&t=61448.
Re: Balance of Market Power
HeloMech53 · Mon Apr 27, 2015 3:08 pm
Would someone be interested in creating the Balance of Market Power Indicator using the code below? This is the code I use in ProTA on my Macintosh. I’d like to have the same indicator for use with TS2. Thank you.
– Created by Igor Livshin. Initially published in the August, 2001 issue of TASC magazine. – The Balance of Market Power (BOMP) indicator measures the strength of the bulls vs. the bears by accessing the ability of each to push price to an extreme level. – The idea of the BOMP calculation is to assign a score for both bulls and bears based on their daily performance related to price movement. – Igor recommends a period of 14 for short-term analysis and 95 for intermediate-term.
-- Code Begins Here
-- Period is user adjustable
Period:14;
-- Calculate Balance of Power Reward
BullsRewardBasedOnOpen = (High - Open) / (High - Low);
BearsRewardBasedOnOpen = (Open - Low) / (High - Low);
BullsRewardBasedOnClose = (Close - Low) / (High - Low);
BearsRewardBasedOnClose = (High - Close) / (High - Low);
BullsRewardBasedOnBoth = IF(Close > Open, (Close - Open) / (High - Low), 0);
BearsRewardBasedOnBoth = IF(Close > Open, 0, (Open - Close) / (High - Low));
BullRewardDaily = (BullsRewardBasedOnOpen + BullsRewardBasedOnClose + BullsRewardBasedOnBoth) / 3;
BearRewardDaily = (BearsRewardBasedOnOpen + BearsRewardBasedOnClose + BearsRewardBasedOnBoth) / 3;
-- Calculate Balance of Power
BalanceOfMarketPower := BullRewardDaily - BearRewardDaily;
-- Plot Balance of Market Power
-- Moving Average Type is user selectable (Simple, Exponential, Weighted, et cetera.)
MA(Period, Exponential, BalanceOfMarketPower);
Re: Balance of Market Power
Apprentice · Tue Apr 28, 2015 2:34 am
local THL;
if (source.high[period] -source.low[period]) == 0 then
THL=0.00001;
else
THL=source.high[period]-source.low[period];
end
local BuRBoO=(source.high[period]-source.open[period])/THL;
local BeRBoO=(source.open[period]-source.low[period])/THL;
local BuRBoC=(source.close[period]-source.low[period])/THL;
local BeRBoC=(source.high[period]-source.close[period])/THL;
local BuRBoOC;
if source.close[period] >source.open[period] then
BuRBoOC=(source.close[period]-source.open[period])/THL;
else
BuRBoOC=0;
end
--BeRBoOC:=If(C>O,0,(O-C)/(THL));
local BeRBoOC;
if source.close[period] >source.open[period] then
BeRBoOC=0;
else
BeRBoOC=(source.open[period]-source.close[period])/THL;
end
MA:update(mode);
BMP[period] = (BuRBoO+BuRBoC+BuRBoOC)/3 - (BeRBoO+BeRBoC+BeRBoOC)/3;
Signal[period] = MA.DATA[period];
If you compare these two implementations you will see that they are identical.
Re: Balance of Market Power
HeloMech53 · Tue Apr 28, 2015 6:42 am
Apprentice. I appreciate your feedback. The original post appears to be raw data with a moving average. The code I submitted displays a moving average of the data. The attached screenshot shows what BOMP looks like on my computer using ProTA. This is very different from the image posted with the original post. I was looking for a BOMP indicator for TS2 that is similar to the indicator I use in ProTA. Thank you.
Re: Balance of Market Power
HeloMech53 · Tue Apr 28, 2015 6:55 am
Apprentice. I copied this text from the Stocks & Commodities article on the BOMP indicator.
The author states:
“USAGE For daily charts, I typically plot a 14-day moving average of the balance of power indicator, though the number of periods varies depending on the nature of the market and the time frame.”
I have never seen or used a raw BOMP; only one plotted as a moving average of the raw data.
I hope this helped to clarifies things. Thank you.
Re: Balance of Market Power
Apprentice · Wed Apr 29, 2015 4:19 am
Show Raw Data Option Added.
Re: Balance of Market Power
Apprentice · Tue Jul 03, 2018 7:16 am
The indicator was revised and updated.