30yr IB-Range High: Hold Short
Initial Balance (IB) Range is established by the first two brackets of the session, after the open. The daily IB Range is the range of the first hour (2×30 minutes) after the Open.
Its High (IBH) and Low (IBL) may act as breakout levels and Support/Resistance levels until they are held.
It is very important to monitor the development of the IB during the first hour and how the price reacts to its H/L because this can provide valuable information about the further price action of the day.
The simplest way to use this information is to look for either the IBH or the IBL after the 1st hour and see if it holds the price. If the price is rejected at these levels, expect the same to happen next time but look for a 1-2 tick violation of the IBH or IBL.
Similar to any S/R setup, the validity of these levels should always be verified by other information (orderflow, price action).
30yr US Treasury Bond Day session Initial balance range
- During the Open (A) period price ran up to a V-POC level and formed the high of the Initial Balance Range
- During the second 30 minute period (B) price was rejected when tested the high of period ‘A’, leaving the range of the Initial Balance range intact (no expansion)
- During the next 30 minute period (C) price tested the IBH again and failed to breakout (1 tick)
- Price retraced back to the high of the night session
- On the Footprint chart, it can be clearly seen that sellers aggressively held short/absorbed buying at the IBH and there was virtually no buying activity above this level. Finally, around 9:45 aggressive selling drove ZB down 6 ticks without any significant size traded at the Ask.
Last updated: December 3, 2023 at 18:43 pm
Uploads are powered by Proton Drive, MEGA, and Vultr.