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
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.