Balance of Power (BOP) – FX Replay User Guide

The Balance of Power highlights who’s in control—buyers or sellers—inside each candle, helping you gauge trend strength, momentum shifts, and potential reversals.

How It’s Calculated

BOP = (Close – Open) ÷ (High – Low)
Shows how far price moved in favor of buyers or sellers relative to the candle’s total range.

How to Read It on FX Replay

• BOP > 0 → Positive: Buying pressure dominates
• BOP < 0 → Negative: Selling pressure dominates
• BOP ≈ 0 → Flat: Market indecision or balance

Plotted around the zero line—unlike a typical oscillator, it reflects raw internal candle pressure.

Practical Trading Uses

• Trend Identification: Sustained positive BOP confirms bullish sentiment; sustained negative BOP confirms bearish tone.
• Divergence Signals: If price makes higher highs while BOP weakens or turns negative, momentum may be fading—watch for reversals.
• Reversal Readiness: Sharp flips from positive to negative (or vice versa) often precede pullbacks or full reversals—especially at support/resistance.
• Overbought / Oversold Insight: Extreme BOP values can flag exhaustion—confirm with structure or a secondary indicator before acting.

Pro Tip for FX Replay Users

Apply a smoothing moving average to BOP in your replay settings to filter noise and sharpen its signals—particularly useful in volatile sessions.

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