The IB stands for Initial Balance, which refers to the high and low established during the first hour of the regular trading session (typically the first two 30-minute periods in Market Profile terminology).
An IB Extension occurs when price trades outside of that initial range later in the session:
• Above the IB high = upside IB extension
• Below the IB low = downside IB extension
I use the 100% and 200% IB extensions as references. For example, Friday’s IB range was 31 points:
• 100% IB extension = an additional 31 points beyond the IB high/low
• 200% IB extension = an additional 62 points beyond the IB high/low
Thanks a lot for this guide, have a great session.
Thanks! Let's Smash!
Suddenly all market participants agreed that an excess formed!
Thank you
when referring to "IB Extension", how can I locate-identify- understand better that IB meaning and measurement. any help is highly appreciated.
The IB stands for Initial Balance, which refers to the high and low established during the first hour of the regular trading session (typically the first two 30-minute periods in Market Profile terminology).
An IB Extension occurs when price trades outside of that initial range later in the session:
• Above the IB high = upside IB extension
• Below the IB low = downside IB extension
I use the 100% and 200% IB extensions as references. For example, Friday’s IB range was 31 points:
• 100% IB extension = an additional 31 points beyond the IB high/low
• 200% IB extension = an additional 62 points beyond the IB high/low