Traders' Tips from TASC Magazine

Balance of Market Power

The Balance of Market Power indicator, presented by Igor Livshin in his article "Balance of Market Power", can be created in MetaStock 6.52 or higher.

To create the BMP, in MetaStock, select the Indicator Builder from the Tools menu. Then click New and enter the formula as listed below:

BMP

THL:=If(H-L=0,.00001,H-L);
{Reward Based on the Open}
BuRBoO:=(H-O)/(THL);
BeRBoO:=(O-L)/(THL);
{Reward Based on the Close}
BuRBoC:=(C-L)/(THL);
BeRBoC:=(H-C)/(THL);
{Reward Based on the Open-Close}
BuRBoOC:=If(C>O,(C-O)/(THL),0);
BeRBoOC:=If(C>O,0,(O-C)/(THL));
BMP:=(BuRBoO+BuRBoC+BuRBoOC)/3 - (BeRBoO+BeRBoC+BeRBoOC)/3;
BMP

To plot the moving average, add the following line to the formula.

Mov(BMP,14,S)

Note: You can replace the 14 with your desired number of time periods.

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