Download software Tutorial videos
Subscription & data-feed pricing Class schedule

New account application Trading resources
Margin rates Stock & option commissions

Attention: Discussion forums are read-only for extended maintenance until further notice.
Welcome Guest, please sign in to participate in a discussion. Search | Active Topics |

BOP interpretation especially divergences Rate this Topic:
Previous Topic · Next Topic Watch this topic · Print this topic ·
Posted : Thursday, August 24, 2017 1:45:41 PM
Registered User
Joined: 7/29/2010
Posts: 417

 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?

Users browsing this topic

Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.