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Registered User Joined: 11/19/2015 Posts: 459
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Hello.
I'm revising BOP and re-read the notes on it. Are there enhanced versions of BOP that do plot some interpretation? For example, in the notes below:
"thus a positive BOP moving down in tandem with an eroding price could not be interpreted bearishly. But a positive BOP moving down into a rising price must be construed bearishly. This would be all the more so if the price is actually attaining new highs. Conversely, a positive BOP moving up into a falling price should be interpreted as a positive, and all the more so if the price is breaking so-called "support levels." Where absolute BOP versus improving or deteriorating BOP seem to be contradictory, you will often find that the answer lies in the time implications. Absolute BOP (green or red) usually has the longer-term implications."
Bearish contradiction
"But a positive BOP moving down into a rising price must be construed bearishly."
Bullish contradiction
"Conversely, a positive BOP moving up into a falling price should be interpreted as a positive, and all the more so if the price is breaking so-called "support levels."
Q: Is there a version of BOP that will aids the interpretation of such conditions with additional visual cues, such a green dot for bullish readings and red/bearing?
No need for formulas or solutions just yet, just curious if this exists and I'm just not finding it. Links to any examples works fine.
Thank you very much.
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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No, there aren't any built in indicators for automatically creating such interpretations.
-Bruce Personal Criteria Formulas TC2000 Support Articles
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Registered User Joined: 11/19/2015 Posts: 459
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Thanks, Bruce. BOP is interesting but I personally find it difficult to interpret quickly. As an example, if you look at ATRS, on 5/16 it goes from a long series of "systematic buying" to immediately being "systematic selling", even though it had been in drawdown since 5-3.
Are there any notes available as to how BOP is calcuated? It's opaque -- without some idea of how it's calcuating, such state changes are difficult (for me) to use.
Thanks again.
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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The calculation is proprietary (I don't know how it is calculated). About the closest thing to an explanation is given in the following topic.
Basic Info on BOP, TSV and MoneyStream
-Bruce Personal Criteria Formulas TC2000 Support Articles
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Registered User Joined: 11/19/2015 Posts: 459
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Thanks, Bruce.
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Registered User Joined: 1/28/2005 Posts: 6,049
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QUOTE (0002ct)
Hello.
I'm revising BOP and re-read the notes on it. Are there enhanced versions of BOP that do plot some interpretation? For example, in the notes below:
"thus a positive BOP moving down in tandem with an eroding price could not be interpreted bearishly. But a positive BOP moving down into a rising price must be construed bearishly. This would be all the more so if the price is actually attaining new highs. Conversely, a positive BOP moving up into a falling price should be interpreted as a positive, and all the more so if the price is breaking so-called "support levels." Where absolute BOP versus improving or deteriorating BOP seem to be contradictory, you will often find that the answer lies in the time implications. Absolute BOP (green or red) usually has the longer-term implications."
Bearish contradiction
"But a positive BOP moving down into a rising price must be construed bearishly."
Bullish contradiction
"Conversely, a positive BOP moving up into a falling price should be interpreted as a positive, and all the more so if the price is breaking so-called "support levels."
Q: Is there a version of BOP that will aids the interpretation of such conditions with additional visual cues
Just a hunch:
I tried putting two Kaufman efficiency ratios in the same pane.
Change the Data Source of one to BOP.
(Changing Data Source requires version 17)
It at least allows you to see how price moves vs BOP.
Is it a good indicator?
I don't know, it would require testing by you.
Also, maybe something like Stochastics or RSI would work better?
Thanks
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Registered User Joined: 11/19/2015 Posts: 459
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Diceman: will check this out to see if it provides any clues. Thanks for the note.
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