initial balance breakout

Check out one of our founders explaining this report in the video below:

initial balance (IB) is the range, the high to the low, in the first hour of market open. if price breaks above OR below the IB, not both, that counts as a single break. if price breaks above AND below the IB, both, that counts as a double break. if price does not break above or below the IB, that counts as a no break. now lets look at ES futures ny session and see how we can use this to trade. If there is a high chance for a single break, then use the by rejection report to determine which side will break and target that side of the IB. you may also want to use the extension report to find a take profit target after the break.

If there is a high chance for a double break, then use the extension report to find a reversal area after the first break of the IB and target the opposite side of the IB.

why initial balance breakouts matter:

this report tells you how often price will continue in one direction vs reverse to touch the opposite side of the range. regardless of what instrument you trade, this report can help you understand its personality.

if an instrument tends to trend, break out and continue, it'll have a higher single break number.

if an instrument is more likely to bounce around in a channel, it'll have a higher double break percentage.