Balance of Power with Jurik Smoothing and Discontinued Signal Levels

Summary

The Balance of Power indicator, attributed to Igor Livshin, estimates the relative ability of buyers and sellers to push prices toward their extremes. The page says this implementation follows the indicator as described in an article published in Stocks and Commodities magazine in August 2001.

It allows the raw Balance of Power readings to be smoothed with a Jurik moving average. Discontinued signal-line levels are then used to generate signals, making the significant levels adaptive rather than fixed. The description explains the indicator’s concept and the alterations to its signal processing, but provides no parameter settings, charts, trading rules, or performance tests. It therefore does not establish whether the signals are profitable or reliable across markets, and users would need to evaluate those questions independently.

Key ideas

• Balance of Power gauges buyers’ and sellers’ ability to drive prices toward extremes.
• The described calculation follows Livshin’s published indicator method.
• A Jurik moving average can smooth the raw indicator values.
• Discontinued signal levels provide adaptive rather than fixed signal thresholds.
• The page supplies no empirical performance evidence or market-specific validation.

Tags

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