/**
* Balance of Power Indicator
* Measures the strength of buyers vs sellers within a period
*/
export function calculateBOP(opens, highs, lows, closes, period = 14) {
if (opens.length < period || highs.length < period || lows.length < period || closes.length < period) {
return {
bop: null,
signal: null,
trend: null,
};
}
// Calculate BOP for each period: (Close - Open) / (High - Low)
const bopValues = [];
for (let i = 0; i < closes.length; i++) {
const open = opens[i];
const high = highs[i];
const low = lows[i];
const close = closes[i];
const range = high - low;
if (range !== 0) {
const bop = (close - open) / range;
bopValues.push(bop);
}
else {
bopValues.push(0); // No range, neutral
}
}
if (bopValues.length === 0) {
return {
bop: null,
signal: null,
trend: null,
};
}
// Get current BOP value
const currentBOP = bopValues[bopValues.length - 1];
// Determine signal
let signal = null;
if (currentBOP > 0.2)
signal = 'bullish';
else if (currentBOP < -0.2)
signal = 'bearish';
else
signal = 'neutral';
// Determine trend based on recent BOP values
let trend = null;
if (bopValues.length >= period) {
const recentBOP = bopValues.slice(-period);
const positiveCount = recentBOP.filter(bop => bop > 0).length;
const negativeCount = recentBOP.filter(bop => bop < 0).length;
if (positiveCount > negativeCount * 1.2)
trend = 'accumulation';
else if (negativeCount > positiveCount * 1.2)
trend = 'distribution';
else
trend = 'neutral';
}
return {
bop: currentBOP,
signal,
trend,
};
}
