Welcome to the Ninja trader indicator where today we're going to cover the initial balance lines indicator for support and resistance. The initial balance, or IB, is one of the cornerstones of the market profile methodology and a fantastic tool for identifying key support and resistance levels. This indicator gives the initial balance, or the IB, and twenty five six percent extensions from the IB. Key features are that the user can set the number of minutes after the open to define the IB or the initial balance. Let's have a look this chart. We're charting charting the future symbol CL with a 10 range bar.
Look at the indicator settings. I'm using a twenty a 24-hour chart. Using sixty minutes as my initial balance, again customizable, and my start time of nine thirty the US open. My open range high is green line plotted and my open range low will be a violet line plotted. Once my opening range, or my initial balance lines are set at ten thirty, 60 minutes after the open, what's really neat about this indicator is it will plot the one hundred percent extension for me along with a 25% percent and 75% percent extension. I am going to show the extensions but you can't turn them on also been a hat the vertical line show up again that can also be turned off. The vertical line will show up in yellow and that will show the end of your initial balance time period. Let's watch this indicator in action as we approach the end of our IB time frame. Again my initial balance I've requested is the first sixty minutes and tear U S open, which should plot at ten thirty when everything will be re calculated. Our initial balance lines are set 10:30am. We can close above the initial balance high. In my trading plan I would go long at 77.79 and my first target would be this green line which is a twenty five percent extension the initial balance value
Depending on your trading plan you could trail this entry or have a hard stop the low fee and entry trigger bar.
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