HETMANCAPITAL
PLJoin the Club

Initial Balance (IB)

Trader's Glossary · Profile and auction

Initial Balance (IB)

Definition. The price range of the first hour of the regular session: 9:30–10:30 AM New York time (usually 15:30–16:30 in Warsaw).

How it works

The first hour sets the day's initial range. Its width, and whether the market extends it later, tells you about the activity of longer-horizon participants. IB extensions are multiples of its width projected above and below.

Example

A narrow IB followed by a clear break in one direction often accompanies wider-range days. A wide IB more often means a day traded within it.

What to watch out for

These are tendencies, not rules. In the clock-change weeks the IB falls an hour earlier in European time.

This is the TPO – Market Profile in the Hetman Terminal (Chess Clock). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data.
This is the TPO – Market Profile in the Hetman Terminal (Chess Clock). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data. See all the Hetman Terminal tools →

♛ The Hetman Terminal is part of Club: live for Dow Jones from the Bishop plan, 6 markets (Dow Jones, S&P 500, Nasdaq, gold, crude oil, Bitcoin) and automatic detection of order flow events from the Rook plan. A session on the ♛ Hetman Index (training, simulated data) in the full panel comes with the Knight plan and above. Compare the plans →

See also

Market Profile (TPO), Regular and overnight session, Acceptance and rejection.

More in Hetman Capital Club

You'll find the full explanation with graphics, examples and exercises in the 📖 Order flow encyclopedia space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).

Educational content, not investment advice.