What Is Initial Balance in Market Profile?
Initial Balance (IB) is the price range established during the initial period of a trading session.
In many Market Profile approaches, the first hour is used to define the Initial Balance.
Traders monitor:7
- Initial Balance High.
- Initial Balance Low.
- Breakouts beyond the range.
- Acceptance or rejection outside the range.
A breakout can indicate range expansion, but not every breakout becomes a trend.
The market's reaction outside the Initial Balance is more important than the break itself.
Do you use Initial Balance for intraday trading?
