Initial Balance Range and Projected Support and Resistance Levels

Summary

This indicator defines an initial balance (IB) from the high and low recorded during a configurable opening window. The example uses the period from 08:00 to 09:00 and is intended for chart timeframes below one hour; the schedule can be changed to fit a trading session. During the window, it updates the range high and low, then calculates the range width.

It projects support levels below the range low and resistance levels above the range high at multiples of that width, including a 1.618 multiple. These levels can be plotted as zones to help traders track potential price extensions beyond the opening range. The document supplies indicator code but no entry or exit rules, market-specific settings, backtest, or evidence that the projected levels predict reversals or breakouts. The output depends on the chosen session hours and timeframe, so its interpretation requires context and separate evaluation.

Key ideas

• The initial balance is the high-low range during a configurable opening period.
• The example measures the range over the 08:00–09:00 window on timeframes below one hour.
• It projects levels above and below the range using multiples of its width.
• Session hours can be adjusted to match different trading sessions.
• The document provides no trading rules or performance validation for the levels.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.