Point of Balance (POB) Indicator
Platform: MT5 Type: Channel Last update: September 21, 2024The Point of Balance (POB) indicator lays a triple line channel that serves as the current trend revealer. The price and candlestick move above/below that channel.
It consists of three lines: the red and green lines are aligned to the upper outer and lower outer boundaries of the channel respectively, while the blue line stays in the middle of the channel.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences. Let’s take a closer look at these inputs below.
Period – defines the calculation period.
The formula for the Point of Balance indicator:
The calculations of the Point of Balance indicator are based on the following formula:
BL = (MinH+MaxH)/2,
BR = (MinL+MaxL)/2,
POB = (BL+BR)/2,
Where
MinH, MaxH – is the maximum and minimum of HIGH prices over the period;
MinL, MaxL – is the maximum and minimum of LOW prices over the period.
How to use the Point of Balance:
Bullish sentiment is considered when the candlesticks are aligned above the channel of the POB indicator. Alternatively, bearish sentiment is underway when the candlesticks are aligned below the channel.
