Point of Balance: Midpoint of High and Low Price Ranges

Summary

The Point of Balance (POB) indicator combines the range of high prices and the range of low prices over a chosen period. It first finds the midpoint between the minimum and maximum highs, then the midpoint between the minimum and maximum lows, and finally averages those two midpoints. The result is a single price level derived from the period’s high and low extremes.

The document identifies the lookback period as the indicator’s sole input. It gives no trading rules, chart interpretation, performance evidence, or guidance for choosing that period, so it explains the calculation rather than establishing how useful the resulting level is in a strategy. The formula also depends on the platform’s definition of the period’s minimum and maximum prices; the note does not discuss missing data or other implementation details.

Key ideas

• POB averages the midpoint of the period’s high-price range with the midpoint of its low-price range.
• The calculation uses the minimum and maximum high prices and the minimum and maximum low prices.
• The lookback period is the only input described.
• The document provides a formula but no evidence of trading performance or rules for using the indicator.

Tags

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