/**
* Balance of Power Indicator
* Measures the strength of buyers vs sellers within a period
*/
export interface BOPData {
bop: number | null // Balance of Power value (-1 to +1)
signal: 'bullish' | 'bearish' | 'neutral' | null
trend: 'accumulation' | 'distribution' | 'neutral' | null
}
export function calculateBOP(
opens: number[],
highs: number[],
lows: number[],
closes: number[],
period: number = 14
): BOPData {
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: number[] = []
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: 'bullish' | 'bearish' | 'neutral' | null = 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: 'accumulation' | 'distribution' | 'neutral' | null = 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,
}
}
