OPEN-SOURCE SCRIPT
Initial Balance v.6 - S.Grey (2026)
This indicator builds a complete intraday framework around the Initial Balance (IB) — the first hour of a trading session.
It combines:
Key structural levels (IB High / Low / Mid / Quartiles)
Expansion targets (measured moves)
Volatility context (ATR, IB ATR, %ATR)
A live decision signal to identify optimal breakout conditions
👉 The goal is simple:
Help you understand when to trust breakouts — and when to avoid them
Features
📈 Initial Balance Levels
IB High (IBH) and IB Low (IBL) define key breakout zones
50% (Mid) shows equilibrium
25% / 75% levels highlight internal structure
📦 IB Range & Visualization
IB box highlights the first hour
Clearly shows how the session started (fast, slow, volatile)
🎯 Expansion Targets
Automatic projections based on IB range:
0.5x, 1.0x, 1.5x, 2.0x+
Custom levels supported
👉 Ideal for:
profit targets
trend continuation validation
📊 Volatility Engine
🔹 ATR
Standard Average True Range
Optional: use Previous ATR (recommended) for stable reference
🔹 IB ATR
Volatility calculated only during the IB window
👉 Shows how fast the market is moving
📈 Range % ATR
Range % ATR = IB Range ÷ ATR × 100
👉 Measures how much of the expected daily move is already used
🚦 Smart Live Signal
A compact decision tool based on volatility and structure:
SignalMeaningTrading Bias🟢 BreakoutLow %ATR + strong IBFavor continuation🔴 ExhaustHigh %ATRAvoid chasing / look for reversal⚠️ Low VolWeak IB activityExpect chop🟡 NeutralNo clear edgeTrade cautiously
🎯 How to Use
🟢 Breakout Environment
%ATR is low (e.g. < 60%)
IB ATR is healthy
👉 Strategy:
Trade IB breakouts
Target expansion levels
Expect continuation
🔴 Exhaustion Environment
%ATR is high (e.g. > 80%)
👉 Strategy:
Avoid breakout trades
Look for reversals or range
⚠️ Low Volatility Environment
IB ATR is very low
👉 Strategy:
Avoid breakouts
Expect fake moves / sideways action
📊 Historical Dashboard
Displays past IB sessions with:
Range
ATR
IB ATR
%ATR
Volume
👉 Use it to:
compare current session vs history
refine thresholds
understand market behavior
⚙️ Recommended Settings
ATR Timeframe: 1D
Use Previous ATR: ON
👉 Provides consistent and reliable volatility reference
🧠 Key Insight
This indicator is built on two core ideas:
Fuel → %ATR (how much move is left)
Engine → IB ATR (how strong the move is)
✅ Best Conditions
Low %ATR + Strong IB ATR → High probability breakout
❌ Worst Conditions
High %ATR → Exhausted market
⚠️ Notes
IB works best on liquid markets (indices, futures, FX)
Avoid relying on signals during major news events
IB ATR depends on timeframe (lower TF = more precise)
🚀 Summary
This tool helps you answer one critical question:
“Is this a good environment to trade breakouts?”
Instead of guessing, you get:
structure
volatility context
and a clear directional signal
👍 Quick Cheat Sheet
🟢 Breakout → go with it
🔴 Exhaust → fade or avoid
⚠️ Low Vol → stay out
🟡 Neutral → wait for confirmation
It combines:
Key structural levels (IB High / Low / Mid / Quartiles)
Expansion targets (measured moves)
Volatility context (ATR, IB ATR, %ATR)
A live decision signal to identify optimal breakout conditions
👉 The goal is simple:
Help you understand when to trust breakouts — and when to avoid them
Features
📈 Initial Balance Levels
IB High (IBH) and IB Low (IBL) define key breakout zones
50% (Mid) shows equilibrium
25% / 75% levels highlight internal structure
📦 IB Range & Visualization
IB box highlights the first hour
Clearly shows how the session started (fast, slow, volatile)
🎯 Expansion Targets
Automatic projections based on IB range:
0.5x, 1.0x, 1.5x, 2.0x+
Custom levels supported
👉 Ideal for:
profit targets
trend continuation validation
📊 Volatility Engine
🔹 ATR
Standard Average True Range
Optional: use Previous ATR (recommended) for stable reference
🔹 IB ATR
Volatility calculated only during the IB window
👉 Shows how fast the market is moving
📈 Range % ATR
Range % ATR = IB Range ÷ ATR × 100
👉 Measures how much of the expected daily move is already used
🚦 Smart Live Signal
A compact decision tool based on volatility and structure:
SignalMeaningTrading Bias🟢 BreakoutLow %ATR + strong IBFavor continuation🔴 ExhaustHigh %ATRAvoid chasing / look for reversal⚠️ Low VolWeak IB activityExpect chop🟡 NeutralNo clear edgeTrade cautiously
🎯 How to Use
🟢 Breakout Environment
%ATR is low (e.g. < 60%)
IB ATR is healthy
👉 Strategy:
Trade IB breakouts
Target expansion levels
Expect continuation
🔴 Exhaustion Environment
%ATR is high (e.g. > 80%)
👉 Strategy:
Avoid breakout trades
Look for reversals or range
⚠️ Low Volatility Environment
IB ATR is very low
👉 Strategy:
Avoid breakouts
Expect fake moves / sideways action
📊 Historical Dashboard
Displays past IB sessions with:
Range
ATR
IB ATR
%ATR
Volume
👉 Use it to:
compare current session vs history
refine thresholds
understand market behavior
⚙️ Recommended Settings
ATR Timeframe: 1D
Use Previous ATR: ON
👉 Provides consistent and reliable volatility reference
🧠 Key Insight
This indicator is built on two core ideas:
Fuel → %ATR (how much move is left)
Engine → IB ATR (how strong the move is)
✅ Best Conditions
Low %ATR + Strong IB ATR → High probability breakout
❌ Worst Conditions
High %ATR → Exhausted market
⚠️ Notes
IB works best on liquid markets (indices, futures, FX)
Avoid relying on signals during major news events
IB ATR depends on timeframe (lower TF = more precise)
🚀 Summary
This tool helps you answer one critical question:
“Is this a good environment to trade breakouts?”
Instead of guessing, you get:
structure
volatility context
and a clear directional signal
👍 Quick Cheat Sheet
🟢 Breakout → go with it
🔴 Exhaust → fade or avoid
⚠️ Low Vol → stay out
🟡 Neutral → wait for confirmation
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.