Anybody here use initial balance as a main part of their trading? I was just introduced to this IB+VWAP trade idea where you fade the first attempt to break out of IB after 10:30 and then wait to see if it pulls back to VWAP and holds or not. That one seems pretty straightforward. I'm planning to backtest it with the stocks I like to trade this month, but I was curious if there are any other well-known IB strategies besides that one. Thanks in advance for any input. Basic setup I referred to is in the attached screenshot, gray box is the first hour of trading and VWAP is in purple. I'm mainly curious if there's other IB setups I should be looking for, or any IB rules of thumb a newer trader should be aware of? .
It seems more like Garbage Zone GZ where the price moves messily in a range. GZ rules of thumb - keep a distance from it. Don't trade / touch it.
What have you learned so far that you can pass along to us about your introduction to this idea? Have you got any rules to generate a quick and dirty dozen stats on? There seems to be little returned by search engine... trading initial balance https://www.dogpile.com/serp?q=trading+initial+balance
Haven't learned much beyond that yet. I only heard about it on a youtube video a few days ago. They also included a strategy where you get a breach of IB high followed by retest and hold of IB high, then treat that as support and go long. I still really struggle with entries near the open, so it seemed like a way to develop plans from 10:30 to noon.
Just what I said above: it seems to work pretty well as a price target for fade scalps after the first breach of IB.
_Is the play based on a reversion back to the 'initial balance' first 60 min price range in this case? _What could trigger an entry?