The Initial Balance (IB) is the range formed in the first hour of trading. Breakouts from the IB often define the day type and directional bias.
Indicators Used
Rules
📈 IB Breakout Long
- Wait for the first 60 minutes to form the IB
- IB should be narrow (< average range)
- Enter on break above IB high
- VWAP must be trending upward
- Target: 1.5× IB range from breakout
🔍 Day Type Filters
- Narrow IB + breakout = Trend Day (hold for larger target)
- Wide IB = likely Range Day (fade the extremes)
- Check single prints for potential support/resistance
- Monitor POC migration direction
56%
Win Rate
2.8:1
Avg R:R
3-5
Trades/Week
💡 Pro Tip
The narrowest IB days (bottom 20% of 20-day average) produce the strongest Trend Days. These are your best breakout setups.