Introduction Initial Balance (IB) refers to the price data that is formed during the first hour of a trading session. It is an important concept in trading as it provides insights into the market's opening sentiment and potential trading opportunities or reversals for the day. There are multiple trading sessions throughout the day. The most popular, the NY Session, is open from 9:30 am to 4:00pm EST making the Initial Balance(IB) range the first hour (9:30-10:30) The other sessions include London, Tokyo, and Sydney.
IB Customization The Initial Balance lines are fully customizable to fit the traders need.
Show Initial Balance This setting will plot the Initial Balance
Fill/Extend IB Range The Fill IB Range toggle fills the area in between the IB High and IB Low. Use the IB Fill Color option to change the fill color in the “Line Settings” group on the settings panel. The Extend IB Range extends the IB lines until the market closes.
Show 1x/2x Extensions The Show 1x Extension toggle displays 1 times the IB range line (IB High - IB Low) above IB High and 1 times the IB range line below IB Low. The Show 2x Extension toggle displays the 2 times the IB range line (IB High - IB Low) above IB High and 2 times the IB range line below IB Low. *Use the Extension Level Color in the “Line Settings” to change the color of the lines.
Show Middle Levels The Show Middle Levels toggle shows all the 50% lines between the upper 2x and upper 1x line, upper 1x and IB high, IB high and IB low, IB low and lower 1x line, and the lower 1x and lower 2x line. *Use the Mid Level Color in the “Line Settings” to change the color of the lines.
Delete Previous Day’s Levels This setting will only show the current day's Initial Balance and delete all previous day levels to produce a clean chart.
How To Use: The Initial Balance Range can support a bias as it shows the opening market sentiment. By watching price action interact with the Initial Balance Range we can watch for indications of trending or failing moves at the high or the low and overall a ranging or trending session. The extension levels are projections as to where price could potentially reach in a trending market. If we are bullish and trending higher, we would want to see price reach the first extension, signs of strength at these levels can be used as confirmation to target other levels. Overall, all these levels can and should be used as support and resistance levels, and as always, can not be used by themselves and require additional confirmation, whether that be an indicator or price action. Below you can see chart examples of these levels in action.
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Minor Update; Uploading new cover image to properly display the indicator
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As requested we have added 2 more extensions for more extreme trend days
gr8 job. the same level can you create based on atr they call as atr level or dm me .
BhrugeshDesai
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Hey, thanks a lot for creating this. It’s been really helpful if you don’t mind adding two more extensions that be great in case, if the market moves higher or downside, keep up the good work and thank you so much.
AseAlgo
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@BhrugeshDesai, Thank you for your feedback and appreciate the support! We have added two more extensions as we agreed there were many scenarios that moved past the 2x extension.
BhrugeshDesai
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@AseAlgo, hey thanks a lot for doing that now it makes it much better to trade in trend day
Marblepond
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Hi, Thanks, was wondering if there was way to change the IB to 3 minutes. many thanks
AseAlgo
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@Marblepond, There is the option to change the session time and the time zone offset in the settings, but we do not entirely understand what you mean by changing it to 3 minutes.
the same level can you create based on atr they call as atr level or dm me .