BalanceOfPower — Balance of Power

Where the close finished relative to the open, scaled by the bar’s range: +1 when the bar closed at its high after opening at its low, −1 for the reverse. A candle-body gauge as a number, usually smoothed.

Signature

BalanceOfPower(period, on=<source>)

Argument	Type	Required	Notes
period	int Param or literal	Yes	SMA smoothing window. 1 returns the raw per-bar value. Bounds 1–200.
on=	symbol	No	Source symbol. Defaults to the trade symbol. Reads open, high, low, close.

Formula

$$ \text{BOP}_t = \frac{C_t - O_t}{H_t - L_t} $$

0 on a bar with no range. With period > 1, the simple average of the last period values.

Warmup

period bars; partial average during the lead-in.

Reading the value

bop.value
bop > 0

Example

class BodyBias(Strategy):
    """Long while smoothed balance of power is positive."""
    smooth = Param(14, min=1, max=200)
    trade = Symbol()
    sizing = FixedCapital()

    def execute(self):
        bop = BalanceOfPower(self.smooth, on=self.trade)
        if bop.value > 0.1 and self.trade.is_flat:
            self.buy(self.trade, reason="Buyers holding the bars")
        if bop.value < 0 and self.trade.is_long:
            self.sell(self.trade, self.trade.position, reason="Bias flipped")

Notes

• Igor Livshin’s Balance of Power.
• period=1 gives the raw, unsmoothed bar-by-bar value; a longer period averages it.