Indicators: Dynamic Balance Point

[Automated-Trading]

Dynamic Balance Point:

Indicator that calculates dynamic balance point for the desired period.

Even though it is a sort of a multi timeframe indicator, it calculates the balance point without usual issues that multi timeframe indicators have: the recalculation. The balance point is calculated correctly for the current timeframe and current timeframe chart values, hence there is not recalculation at all.

The balance point itself can be used as a sort of support/resistance indicator or for dynamic stop losses (if used for orders/positions management). In the case when it is lower than the current close price(s), use it as a support. If the close price(s) are lower than the balance point, then use the balance point as a resistance.

Author: Mladen Rakic