How to Use Balance of Power Indicator for Investing & Trading?

List of 5 Uses for This Powerful Indicator That Reveals Dark Pools

One of the constants in a rapidly evolving Market Structure is that indicator analysis is changing with it. Often a popular indicator suddenly becomes unreliable or inconsistent, making it confusing for the Individual Investor or Retail Trader to try and figure out how to interpret it. Use the Balance of Power Indicator for investing and trading because it leads price, and reveals where giant Buy Side Institutions are quietly accumulating stock. It is one of the other indicators that are evolving and becoming more useful, more indicative, and far more important to investing and trading.

See the chart example below for the Shift of Sentiment™ revealed in the Balance of Power Indicator bars, and the Dark Pool Buy Zone™ Candlestick Pattern.

Indicators will evolve due to market structural changes because of how Market Participant Groups obtain information and how they analyze it. This also depends on when the information is available and to whom. All of this together is reshaping how indicators function in relationship to Candlestick Pattern Formations.

This is often an area missed by tunnel vision strategies as well as trading systems, that do not or cannot adapt to the changing Market Conditions and Market Structure. A lack of adaptation is creating weak trades and less profitability for Individual Investors and many Retail Traders.

One indicator that has evolved and become far more than it was ever intended by its writer and developer, is now one of the most important indicators for Individual Investors and Retail Traders.

Yet few know about it, and even fewer understand how to interpret its patterns and what each pattern means in our current Market Structure. Balance of Power is one of the most important indicators ever written. However Individual Investors and Retail Traders often simply do not understand how to interpret it, because they are unable to use it properly.

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Trade Wisely,

Martha Stokes CMT

TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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