What is the balance of market power?

The balance of market power indicator is used to determine the strength of th bulls and the bears in the given stock. When the bulls gain power the indicator goes up. When the bears gain power the indicator goes down.

The formula is based on 3 things. The first is the opening price. If it was up then bulls were in control vice versa. The second is the closing price if the stock went up the bulls won. The third is the overall day. Was the market up or down?

Below is an example of how this indicator looks on your chart.