The opening range and initial balance are defined as the price range the market creates in the first 30 min and the first hour after the session open. These ranges are very important in the market and are used by traders to spot potential turning points and support and resistance levels.
The TDU Initial Balance indicator draws all the important pre-market levels, opening range, and initial balance in real time. When the market rallies once the initial balance is established any extensions are automatically drawn as these extensions often act as support & resistance levels.
Premarket High/Low Levels
The indicator can draw the pre-market low/high. These levels often act as support/resistance during the regular trading hours.
Opening Range High/Low Levels
The indicator can draw the opening range low/high. The opening range is defined as the price range of the first 30 minutes after the open and is used by a lot of traders. These levels often act as support/resistance during the rest of the day.
Initial Balance High/Low/Mid Levels
The indicator can draw the initial balance low/mid/high. The initial balance is defined as the price range of the first 60 minutes after the open and is used by a lot of traders. These levels often act as support/resistance during the rest of the day.
Initial Balance Extension Levels
When price breaks out of the Initial Balance low or high the indicator will start drawing up the initial balance extensions. These extensions are 100%,200%,300% and 400% of the initial balance range.
As you can see in the screenshot below price often respects these extension levels. Here it broke the IB low and went to the -100% extension. When it touched the 100% extension price immediately reversed
Initial Balance Statistics
The indicator can show statistics on how often the Initial Balance gets broken in total, to the low side, and to the high side. It also shows the average % amount price broke.
In the screenshot below we see that
- The Initial Balance got broken 100%, so every day
- The IB Low got broken 60% of all days
- The IB High got broken 60% of all days
- When the IB Low broke, it broke downloads for an average of 108% of the IB range
- When the IB High broke, it broke up for an average for 58% of the IB range
Bloodhound/BlackBird/Automated strategies support
The indicator exposes plots for all the important levels like
- Initial Balance low, mid and high
- Opening Range low & high
- Premarket low's & highs
- And a signal state indicating if we are in premarket session (0), during the opening range(1), during the initial balance (2), or after the first hour when the initial balance is set (3)
A profitable strategy based on the Initial Balance and Opening Range Indicator
In the following video, we show a profitable strategy based on the Initial Balance and Opening Range indicator when combining it with our VWAP Indicator.
- Draws today's premarket low/high
- Draws the opening range for each trading session
- Draws the initial balance for each trading session
- Draws initial balance 100% - 600% price extensions
- Allows the user to specify the session start and end time
- Allows the user to specify the initial balance start and end time
- Shows statistics on past IB breaks
- Optionally show price
- Optionally show price range
- Turn on / off Initial Balance
- Turn on / off Opening range
- Turn on / off Premarket
- Shade Opening range background
- Shade Initial balance background
- Shade Premarket background
- Support for Ninjascript/bloodhound
- Works on any instrument (futures, forex, crypto, options, stock,...)
- Works on any timeframe
- Works on any bar type (time, tick, volume, Renko,...)
- Works with any NinjaTrader License
- added option to turn on/off Initial Balance.
- added option to turn on/off Opening Range
- added option to turn on/off the Premarket
- added option to show the price range of the initial balance/opening range /premarket
- cleaned up all settings
- small bugfixes.
- fixed issue that indicator was not working on some timeframes.
- Added plots to support bloodhound/blackbird and automated strategies