Report Guides
Opening range analysis for session direction and day type classification
The Initial Balance (IB) is the price range established during the first 30-60 minutes of Regular Trading Hours (RTH). The IB High (IBH) and IB Low (IBL) become critical reference levels for the rest of the session. The width of the IB is one of the strongest predictors of day type.
| Metric | Description | How to Use |
|---|---|---|
| IB Width Distribution | Histogram of IB ranges over lookback | Compare today's IB to historical average |
| Extension Rates | % of days that extend 1x, 1.5x, 2x | Set profit targets based on extension probability |
| Day Type Classification | Distribution of day types by IB width | Predict day type from IB width |
| Directional Bias | Which direction extensions tend to go | Filter trade direction after IB forms |
Narrow IB (below average): Expect a trend day. Wait for the IB breakout, then trade in the breakout direction. Target 1.5x-2x IB extension. Place stop on the opposite side of the IB midpoint.
Wide IB (above average): Expect rotation. Fade moves toward IBH and IBL. Target the opposite IB extreme or the IB midpoint. Use the IB edges as your stop levels.
IB Failure: If price breaks one IB extreme then reverses back through the IB to the opposite side, this is a strong reversal signal. The initial breakout trapped traders.