I've recently become interested in BOP.  I have a question looking at BCOR on 7-5-12.

It's 0948 and BOP on the Daily chart of BCOR is positive with a slight accumulation and has been since the open.

However on the 5-min chart, the first two candles are decidedly red.  What don't I understand about BOP to explain this apparent inconsistency?

Thanks.

Balance of Power (BOP) is based on the price and volume bars of the time frame for which it is being calculated.

Like many indicators, it can have significantly different values when the time frame is changed. Take a look at RSI and Stochastics in Daily and 5-Minute Time Frames across a variety of symbols and you will see what I mean. It is very possible for the long term outlook to be opposite the short term outlook.

I could not say why those particular bars are red as the calculation of BOP is proprietary.

Basic Info on BOP, TSV and MoneyStream

Both RSI and Stochs have look back periods in their calculations.  I understand that BOP is proprietary, but I thought it was based upon the current candle's OHLC/Volume.  I see nothing in the past candles to indicator that they have much of an effect, but now I see the volume and it's pretty low for those first few candles on the (5).

Thanks Bruce.  I'll keep trying to understand it.

You're welcome.