Point of Balance Oscillator

Walter Downs tries to quantify the fear of the bulls and the fear of the bears from the price behavior. The relationship between the highest and the lowest maximum price of a period is to determine the fear of the bulls and the fear of the bears determines the relationship between the highest and the lowest minimum price of the period. The point-of-balance is then the point, so to speak, where both forces keep the balance, is then the average value of these key figures.

First of all, one pays attention to the crossovers over the center line. They are especially relevant if the indicator makes a crossover simultaneously in several time frames, including in longer ones. In this case, false signals occur relatively rarely. In longer sideways movements, however, false signals can also occur here, as with all trend followers. Larger reversals are obtained by working with trend lines for the indicator. You can also use zone analysis.