I want to start a discussion about BOP interpretation and how people are using it in their trading.
I have found that when BOP is clearly diverging with price on a longer time frame chart, eg. D, that if I go to the next shorter time frame charts eg. 4H, 2H they will confirm the price action.
If the shorter time frame charts don't confirm, then I am more confident that the price action will soon follow the trend of BOP on the D, 4H,2H charts.
In summary, I like to always contextualize BOP and see agreement in BOP trends over multiple time frames. Often the D and longer time frame BOPs lag price action.
I think it is important to always look at the BOPs of longer and shorter time frames than what I am trading. BOP columns can help with this.
I want to know whether any BOP divergence from price is likely from lag or is likely real.
I do believe in very strong BOPs ie. >70 especially nearing 100 that are not yet confirmed by price action as eventual big movers but it can sometimes take several days or even weeks for it to happen.
BOP extreme values can be very useful as leading indicators.
BOP can be very frustrating.
What are your thoughts?