ib breakout: by close

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

there are five areas price can close between, this report tells you how often price closes in each of the areas. we use the session high & low, initial balance high & low, and session mid. knowing where price closes the most can help you understand where price can go - catch the move before it happens.

lets take a look at es futures ny session, to see some examples:

on the left we see that if there is a high chance of price closing inside the initial balance at the end of the session, then use price outside of the ib as a potential entry and target inside the ib as a potential take profit.

on the right we see if there is a high chance of price closing outside the initial balance at the end of the session, then use price inside the ib as a potential entry and target the outside of the ib as a potential take profit.

for additional confluence you can take a look at the chances of a close above or below session mid and pair that with how price closes according to the initial balance.

on the left we see that if there is a high chance for a close above session mid, then use price below session mid as a potential entry, and price above session mid as a potential take profit.

on the right we see that if there is a high chance for a close below session mid, then use price above session mid as a potential entry, and price below session mid as a potential take profit.

why initial balance days by close matters :

understanding where price closes most frequently will help you find trades with high probabilities. if price is trading in an area that it rarely closes in, you can take a trade expecting it to move out of the area. if it's in an area it normally closes in, you should not be taking trades hoping it moves out of the area