LessonsIndicator atlasPrice and value
Initial balance (IB)
The range of the session's first hour: where the market set its first boundaries.
How we compute it
The high and low of the candles from the first hour of each session, and after it ends, 1.5× and 2× range extensions above the high and below the low.
How to read it
- Leaving the IB and acceptance outside it is range extension (a directional day).
- Rejection at both edges is a range day.
Traps
- BTC sessions have no real open like an exchange: the IB can be very wide (the whole move in the first hour) or very narrow.
Combine with
- With the profile: an IB edge at VAH or VAL is a stronger boundary.
- With flow: an IB breakout with aggression and rising OI versus one without them.
In Charts
Indicators → Initial balance
The figure from a real market slice, the exercises and the Charts workstation button are in the Lessons tab.