The Initial Balance (first 60 minutes of the US cash session) defines the day's early range. When price breaks out of IB but fails to hold, it signals responsive sellers (IB high) or buyers (IB low) overwhelming the breakout. Fade the failed break back inside IB.
Indicators Used
VWAPPivot Points
Rules
📉 Fade Failed IB High Break
- Mark Initial Balance: highest high + lowest low of first 60 minutes
- Price breaks above IB high after 10:30 EST
- Within 2-3 candles, price closes back below IB high
- Enter short on reclaim close
- Stop: above the failed breakout high
- Target: IB low (opposite side of range), 2R minimum
📈 Fade Failed IB Low Break
- Price breaks below IB low, fails, closes back inside
- Enter long on reclaim close
- Stop: below the failed break low
- Target: IB high
First 60m
IB Period
IB Opposite
Target
💡 Pro Tip
IB failures are most common on balanced-looking profile days (D-shape or bell curves). On strong trend days (P-shape or elongated profiles), IB breaks usually hold and extend. Don't fade them. Read the profile shape before attempting this setup.