Plotting Market Profile Initial Balance Levels and Extensions

Summary

This document describes an indicator for plotting the Initial Balance (IB) from a selected opening half-hour on an M30 chart. It records the high and low during the configured time window, draws the resulting range, and extends the boundaries across the chart. Additional rectangles mark price zones above and below the IB at multiples of its range, offering a visual map of intraday reference levels. The author uses the DAX session as the example and notes that the time settings can be changed for US markets.

The indicator is a charting aid rather than a tested entry or exit strategy. The author notes that traders differ on which half-hour should define the Initial Balance, choosing the opening interval while allowing it to be changed. The number of displayed extensions and the days shown are configurable; showing many sessions can make the chart hard to read. No evidence is provided that these levels predict price movement, and the post does not add TPO calculations.

Key ideas

• The Initial Balance is defined by the high and low of a configurable half-hour interval.
• The example uses the DAX opening session, while session times can be adapted for other markets.
• The indicator plots the range and price zones spaced by multiples of its height.
• The choice of half-hour used to define the Initial Balance varies among traders.
• The code visualizes reference levels but provides no evidence of predictive value.

Tags

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