Balance of Power Histogram for Trend Strength and Direction

Summary

This document describes a Balance of Power indicator displayed as a colored histogram. It presents the histogram as a way to view the strength and direction of the current trend, with colors determined by configured overbought and oversold levels and by whether the indicator is moving up or down.

The text gives no formula, threshold values, trading rules, chart examples beyond a figure reference, or performance evidence. It also notes that this implementation depends on an external smoothing library, but does not explain the smoothing method. Treat the histogram as an indicator description rather than a tested trading strategy; the document does not establish how reliably its colors identify trends or how to use it for entries, exits, or risk control.

Key ideas

• The indicator presents Balance of Power values as a color-coded histogram.
• Its colors reflect configured overbought and oversold levels and the histogram's direction of movement.
• The document describes the indicator's purpose but provides no formula, trading rules, or performance evidence.
• The implementation depends on a separate smoothing library.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.