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INDICATORS · BALANCE OF POWER

Balance of Power in Crypto: Why the Value Changes Before Candle Close

Balance of Power is (close − open) ÷ (high − low). Early in a bar the range is small, so the ratio can swing to ±1 on tiny moves.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

Balance of Power (BOP) = (close − open) ÷ (high − low), often smoothed. On the live bar, the close moves, and the range only widens. Early in the bar, a tiny range makes the ratio extreme: a $10 move in a $12 range reads about 0.83. As the range widens, BOP moderates. Smoothed BOP is steadier but still uses the live value. Use closed bars.

Which part of Balance of Power uses the live bar

ComponentUses current bar?Effect intrabar
Close − openYesMoves
High − lowYesOnly widens
RatioYesExtreme early

When high equals low (no range yet), BOP is undefined; tools handle it differently.

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How much it moves inside one bar

Balance of Power during one bar (illustrative)Balance of Power during one bar (illustrative): FIRST SECONDS: Range $12, move +$10: 0.83; MID: Range $300, +$40: 0.13; LATE: Range $420, −$90: −0.21; CLOSE: Final.FIRST SECONDSRange $12, move +$10: 0.83MIDRange $300, +$40: 0.13LATERange $420, −$90: −0.21CLOSEFinal
Only Balance of Power's closing value is kept in history. Original ChartsPod editorial graphic.
Illustrative intrabar range of Balance of Power vs its closed valueIllustrative intrabar range of Balance of Power vs its closed value: Early BOP 1 ; Closed BOP -0 .ILLUSTRATIVE INTRABAR RANGE OF BALANCE OF POWER VS ITS CLOSED VALUEEarly BOP1Closed BOP-0
How far Balance of Power travels inside a bar versus between bars. Original ChartsPod editorial graphic.

Rules

Balance of Power signal hygieneBalance of Power signal hygiene: Signals on closed bars; Bar-close alerts; Backtest uses the same rule; Live value labelled provisional; Settings identical across chart and alerts.BALANCE OF POWER SIGNAL HYGIENESignals on closed barsBar-close alertsBacktest uses the same ruleLive value labelled provisionalSettings identical across chart and alerts
Closed values are what history shows. Original ChartsPod editorial graphic.

Zero range means an undefined ratio; check how your tool displays it.

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Questions readers ask

What is Balance of Power?

(Close − open) ÷ range.

Why is it extreme early in a bar?

The range is tiny.

Closed bars?

Yes.

Sources and methodology

Indicator formulas are standard definitions; live-versus-closed behaviour follows TradingView's repainting documentation. Values in examples are illustrative.

  1. TradingView Pine Script: Repainting — live vs historical calculation.
  2. ChartsPod indicator reference — indicator calculations.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.