webcab.lib.finance.trading.indicators
Class MarketStrength

java.lang.Object
  |
  +--webcab.lib.finance.trading.indicators.MarketStrength

All Implemented Interfaces:

Serializable

public class MarketStrength

extends Object

implements Serializable

Within this class we class a number of indicators which measure the relative strength or weakness of the market.

See Also:

Serialized Form

Constructor Summary

MarketStrength()
Creates a new instance.

Method Summary

double

balanceOfPower(double opening, double closing, double high, double low) Implements the Balance of Power (BOP) indicator, created by Igor Livshin; which captures the struggle between the Bulls and Bears throughout a trading day.

Methods inherited from class java.lang.Object

clone, equals, finalize, getClass, hashCode, notify, notifyAll, toString, wait, wait, wait

Constructor Detail

MarketStrength

public MarketStrength()

Creates a new instance.

Method Detail

balanceOfPower

public double balanceOfPower(double opening,
                             double closing,
                             double high,
                             double low)

Implements the Balance of Power (BOP) indicator, created by Igor Livshin; which captures the struggle between the Bulls and Bears throughout a trading day.

Interpretation
When the BOP indicator is towards the high if its range it will signifies that the Bulls are in control, conversely when the indicator is towards the lows of its range it signifies that the bear are in control. If the indicator move from a high positive range to a lower positive range it signifies that the buying pressure is decreasing. Conversely, if the indicator move from a low negative range to a higher negative range it signifies that the selling pressure is decreasing.

Evaluation
The BOP indicator is evaluated by the following formulae:

BOP = (Close - Open)/(High - Low)

where close is the days closing price, open is the days opening price, high is the highest traded price during the day and low is the lowest traded price during the day.

Parameters:

opening - the opening price of the asset on the trading day under consideration

closing - the closing price of the asset on the trading day under consideration

high - the traded high of the asset on the trading day under consideration

low - the traded low of the asset on the trading day under consideration