stelaraX - Balance of Power

stelaraX – Balance of Power

stelaraX – Balance of Power is a momentum indicator designed to measure the strength of buyers versus sellers within each price bar. By analyzing the relationship between open, close, high, and low, it reveals which side of the market is in control.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
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Core logic

The Balance of Power (BOP) compares how far price moves from open to close relative to the total candle range and smooths the result over a user-defined period.

Key principles:

* positive values indicate buyer dominance within the candle
* negative values indicate seller dominance within the candle
* smoothing reduces noise and highlights sustained pressure
* values oscillate around a zero baseline
* stronger readings reflect increased conviction

Persistent positive BOP values suggest accumulation, while persistent negative values suggest distribution.

Visualization

The script plots:

* the Balance of Power as a histogram in a separate indicator pane
* green bars when buyer pressure dominates
* red bars when seller pressure dominates
* a zero reference line for directional balance

This histogram layout provides a clear visual representation of intrabar power shifts.

Use case

This indicator is intended for:

* identifying short-term buyer and seller dominance
* confirming momentum shifts within trends
* spotting early accumulation or distribution phases
* filtering entries based on internal candle strength
* supporting momentum and volume-agnostic strategies

It works well alongside trend filters, price structure, or AI-assisted chart evaluation.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.