I have been looking at BOP on various ETFs over both short and long time frames.  What has surprised me is that the levels of divergence are so significant.  Some of the strongest upward price trends took place when BOP was negative and some of the stongest downward trends took place when BOP was positive.  For example if you were to look at GLD between Dec 14 and Mar 15 you will see most of the big upswing in a neg BOP and much of the big down in a green BOP.  As this is an important Worden indicator I am hoping you can provide insight or direct me to a video that would allow me to better interpret the signal.  Thank you.

The following topic has some basic background and information on Balance of Power (BOP).

Basic Info on BOP, TSV and MoneyStream

One quote from this topic is, "The single most definitive and valuable characteristic of BOP is a pronounced ability to contradict price movement. "

There is a link to the video library at the top of the topic (but most content requires subscribing to the library - including the Interpreting Balance of Power video).

One thing to note about most ETFs is that the volume of the ETF is not going to necessarily reflect the underlying volume of the basket of stocks, equities and commodities it contains.

I don't know how Balance of Power is calculated and couldn't tell you if I did because it is proprietary. I can say for sure it is calculated entirely using current and past values of open, high, low, close and volume. It may not use all of that information, but it isn't based on anything beyond that information.

I need a formula for a stock that has been going down for a month and appears to be bottoming while the BOP has been green the whole month and TSV and MS are improving.

Thanks

David

The following assuming that TSV and MS improving just means going up in value between the previous bar and current bar (it use a raw 1-period TSV since nothing else was specified). It also uses a 21-period net change and linear regression slope over the same period to be "going down for a month". No definition of "appears to be bottoming" was contemplated or is included in the formula.

MIN(BOP,21) > 30 AND C < C21 AND 21 * (C - C21) + 19 * (C1 - C20) + 17 * (C2 - C19) + 15 * (C3 - C18) + 13 * (C4 - C17) + 11 * (C5 - C16) + 9 * (C6 - C15) + 7 * (C7 - C14) + 5 * (C8 - C13) + 3 * (C9 * C12) + C10 < C11 AND TSV > TSV1.1 AND MS > MS1.1