Hello, traders! As you know it's very important to identify the balance of bulls and bears. Today, we introduce you one of the most pretty and easy-to-interpret tools - Balance Of Power Oscillator. Balance of Power (BOP) is an oscillator that measures the strength of buying and selling pressure. Introduced by Igor Levshin in the August 2001 issue of Technical...
Part 2 here is all about CONTROL . As I said in part 1, people tend to equate green candles with buying and red with selling but the default coloring is wrong and does not reflect the actual actions of smart money. Like color, a common misconception is that if the day is red and way down, people are selling off. The reality is most of the time the market is...
I'm making a little educational series of tutorials to put some of my trading philosophies into writing for myself but also to help teach anyone interested or provide a fresh perspective to others. Let's start with COLOR . From indicator lines, fill regions, background colors, arrows, to barcolors (be it from an indicator or just the basic candle), most traders...
In Part #1, we established how technical indicators - even the ones with high potential to be leading indicators that may enable revealing possible upcoming price movements, using the example of the Balance of Power (BoP), can come short of taking into consideration all factors associated with the price - we listed 7 specific issues that may cause BoP to show...
I guess it's the same story with many traders, few years ago, when i first got introduced to the world of technical analysis and indicators, i was fascinated. trading is such an easy thing, just follow the indicator signals, right? then i started to dig deeper only to learn, each indicator shows something specific - and you need to know what is it that you need...