Balance of Market Power 2 Indicator
The Balance of Market Power 2 indicator for MT5 is an ideal trending tool showing whether buyers or sellers are in control. It is suitable for detecting price reversal.
Description
It’s all in the title. Balance of Market Power 2 for MT5 is an indicator designed to measure the strong market fraction between buyers and sellers. It estimates the strength of bears and bulls to push each other using net retail prices. Although the indicator looks like RSI, it is not tied to rage.
This means that it is sensitive to any part of the indicator window at the bottom of the price action.
The values are smoothed using simple moving averages, and the bands use the Eureka deviation rather than the usual standard deviation.
How to Trade Using the Balance of Market Power 2 Indicator
The indicator warns you when the balance of power is shifting between buyers and sellers. Using the indicators is relatively easy. You only need to define the color and direction of the indicator.
- Buy when the indicator turns dark blue and moves up.
- Go short when the indicator moves down and changes color to pale purple red.
Conclusion
The Balance of Power NRP Alerts indicator is designed so that you can easily determine who is in control: bulls or bears. You are simply trading in the direction of the market.