Initial Balance Extension

Definition

Initial Balance Extension in plain English

Remember the Initial Balance — the high-to-low price range from the session's first hour. An Initial Balance Extension is when price later breaks out and pushes beyond that range, either above the high or below the low. It's like a runner who paced quietly for the first lap and then suddenly surges past their earlier best — a sign the day has picked a direction and buyers or sellers are willing to push into new territory rather than stay boxed in.

Learn these first

• Break-even stop
• True Range (TR)

Related Volume Profile Analysis terms

• Ask
• ATR (Average True Range)
• Auction Market Theory
• Below value
• Bid
• Break-even stop
• Buying tail
• Day type
• Excess
• Excess high / Excess low