Chapter 3

Balance of Power

First published: 02 January 2012

Summary

This chapter elucidates balance of power or BOP, BOP explains whether the underlying action in the trading of a stock is a characteristic of systematic buying accumulation or distribution. The level or central line in BOP represents a stock's accumulation above or below its zero line. When a stock shifts between bearish, neutral, and bullish, such shift shows a change of character. BOP is similar to accumulation/distribution when using other charting programs.

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