OPEN-SOURCE SCRIPT
ES Balance Inventory Market Profile
ES Balance Inventory Market Profile plots projected ES market-structure levels using a major historical balance zone as the anchor.
The script starts from a user-defined base balance range and projects that balance width upward in repeated increments. The purpose is to visualize how an important historical balance area can continue to act as a structural reference framework as price moves into higher regimes.
Psychology behind the indicator:
This indicator is inspired by inventory psychology, auction-market behavior, and balance-zone theory. The core idea is that markets often behave like inventory-driven businesses: price builds around a cost basis, then moves higher when inventory is marked up for distribution or lower when inventory has to be repriced.
A major balance zone can become a psychological anchor because traders, funds, and algorithms may continue to reference prior areas where meaningful business was done. The projected levels are meant to represent repeated inventory shelves above the original balance.
When price approaches one of these shelves, the key question is not whether the level will automatically hold. The useful information comes from how market participants behave around it: acceptance, rejection, failed breakdowns, failed breakouts, reclaim attempts, compression, expansion, volume response, and volatility response.
The psychology is also rooted in memory, positioning, and auction behavior. Large historical balance areas can leave a lasting footprint because traders remember them, systematic models may reference them, and price often rotates between structural zones when liquidity, positioning, or volatility changes.
Features:
• Uses a user-defined historical balance zone as the base range
• Projects repeated balance-width levels up to 10,000
• Plots clean horizontal structure levels directly on the chart
• Right-side labels make each level easy to read
• Current market zones from 5,000 to 8,000 are visible by default
• Users can enable or disable level ranges in 1,000-point increments
• Customizable colors, label spacing, and line extension settings
Suggested use:
Use these levels as structural reference zones, not as automatic buy or sell signals. The most useful information comes from how price behaves around a level: acceptance, rejection, reclaim, failure, compression, or expansion away from the zone.
This indicator can be used alongside price action, volume, VWAP, market profile, volatility, and broader market context to support discretionary analysis.
This script does not generate trade signals, does not predict future price movement, and does not provide financial advice. It is an educational and visual market-structure tool only. Trading involves risk, and users should make their own decisions based on their own analysis and risk tolerance.
The script starts from a user-defined base balance range and projects that balance width upward in repeated increments. The purpose is to visualize how an important historical balance area can continue to act as a structural reference framework as price moves into higher regimes.
Psychology behind the indicator:
This indicator is inspired by inventory psychology, auction-market behavior, and balance-zone theory. The core idea is that markets often behave like inventory-driven businesses: price builds around a cost basis, then moves higher when inventory is marked up for distribution or lower when inventory has to be repriced.
A major balance zone can become a psychological anchor because traders, funds, and algorithms may continue to reference prior areas where meaningful business was done. The projected levels are meant to represent repeated inventory shelves above the original balance.
When price approaches one of these shelves, the key question is not whether the level will automatically hold. The useful information comes from how market participants behave around it: acceptance, rejection, failed breakdowns, failed breakouts, reclaim attempts, compression, expansion, volume response, and volatility response.
The psychology is also rooted in memory, positioning, and auction behavior. Large historical balance areas can leave a lasting footprint because traders remember them, systematic models may reference them, and price often rotates between structural zones when liquidity, positioning, or volatility changes.
Features:
• Uses a user-defined historical balance zone as the base range
• Projects repeated balance-width levels up to 10,000
• Plots clean horizontal structure levels directly on the chart
• Right-side labels make each level easy to read
• Current market zones from 5,000 to 8,000 are visible by default
• Users can enable or disable level ranges in 1,000-point increments
• Customizable colors, label spacing, and line extension settings
Suggested use:
Use these levels as structural reference zones, not as automatic buy or sell signals. The most useful information comes from how price behaves around a level: acceptance, rejection, reclaim, failure, compression, or expansion away from the zone.
This indicator can be used alongside price action, volume, VWAP, market profile, volatility, and broader market context to support discretionary analysis.
This script does not generate trade signals, does not predict future price movement, and does not provide financial advice. It is an educational and visual market-structure tool only. Trading involves risk, and users should make their own decisions based on their own analysis and risk tolerance.
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.
Independent market structure tools and educational chart analysis for learning and review only. Not financial advice.
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.
Independent market structure tools and educational chart analysis for learning and review only. Not financial advice.
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.