FREE Initial Balance With Extension Levels Indicator – Trade With The Initial Balance on NinjaTrader 8

Trade with the Initial Balance

Financial markets are volatile, but at the same time, they are fairly predictable. This predictability gives traders the ability to determine how the price of an instrument is likely to fluctuate, using historical price data. Day traders use the Initial Balance to predict how the price of an instrument will move for the rest of the day, and make their strategies accordingly.

What is the Initial Balance (IB)?

The initial balance is the range within which price fluctuates during the first hour after the day’s trading session opens. It is defined between the lowest and highest price levels of the first hour. The IB High acts as the level of resistance while the IB Low acts as the level of support.

The concept of the Initial Balance is based on the activities of traders in the early session when it sets the tone for how the market will behave for the rest of day. The image above shows the Initial Balance plotted by FREE Initial Balance With Extension Levels Indicator on the popular NinjaTrader 8 platform.

Opening Range Extensions

This is the range between the IB High and the IB Low prices. After the Initial Balance has been established, the opening range is extended as the market moves beyond either the IB Low or the IB High, with a new high or low. The Initial Balance is important to day traders as it helps them to visualize price movements and identify trading opportunities by providing hints on how the trading session will develop throughout the day.

The Initial Balance indicator

Technical indicators are important tools in a trader’s arsenal, as they assist in quickly identifying trading opportunities by visualizing important trends in price movement. An Initial Balance Indicator calculates the range between the high and low price levels of the first hour of trading and plots these levels as horizontal lines on the chart. The high level is plotted on the chart as the resistance whereas the low level is plotted below it as the level of support.

A good Initial Balance indicator should also plot range extension levels where prices breakout above the Initial Balance high or break down below the Initial Balance low. These show where prices are likely to bounce back. Additionally, a good Initial Balance indicator should plot those extension levels as soon as the opening range is established so that traders know that those are the important levels to include within their trading strategy for the day.

Such are the great features of the FREE Initial Balance With Extension Levels Indicator by Rize Capital provides and what’s even better is the fact that it is FREE FOR LIFE!

The FREE Initial Balance With Extension Levels Indicator

This indicator works with all instruments and is suitable for all traders interested in the opening range and the initial balance. It highlights the levels that a trader needs to keep an eye out for and is packed with great features. The indicator currently only works on intraday Time Frame charts.

Why choose the FREE Initial Balance With Extension Levels Indicator?

1.0 FREE for life

The FREE Initial Balance With Extension Levels Indicator for NinjaTrader 8 is free for life. Just activate the free license and start using it. There is a premium version of this indicator called Trading Zones With Extension which provides extra plots and information for more trading prowess.

2.0 Intuitive user interface

It has a user-friendly interface and works for all instruments, making it easy to stay alert of the important support and resistance levels of the market.

3.0 Ease of use & customization

Additionally, it’s easy to customize the plots by changing the colors and opacity to suit personal preferences.