Initial Balance, Checklist

Initial Balance Checklist



Participant Determination (short term vs. long term)

Short Term Traders

• Opening in balance
• Opening Overlapping higher/lower
• Hitting Dynamic References? (i.e. unchanged, yesterday’s settle, then weak market)
• Weak Market? (no overnight counter auction, gap close but gap & go
• Secure High/Low Excess
• High/Low (Secured, poor, weak)
• Half Back
• Bus Driver Test - Stopping at visible waypoints

Long Term Traders

• Range Extension
• Anticipate at least one pause for the market to catch up
• Don't fade until the end of session
• Bus Driver Test - Stronger volume & directional convection?

Target Determination - Trend & Range

Target, Short Term Traders

• True Range
• 2X Initial Balance
• Visible landmark coincidence (POC, HOD, LOD, VA, Globex)
• Half Back
• Supply/Demand Bases

Targets, Long Term Traders

• Average True Range
• Supply/Demand Bases
• MP Landmarks
• Pivot Landmarks
• OL Lower, Lower, OL, Higher, OL Higher)
• Start One Time Framing

If Range Extension > 2x Initial Balance Range,
Then Day_Type = Trend_Day
and Control = LONG_TERM

If Range Extension <= 2x Initial Balance Range,
Then Day_Type = Normal_Variation_Day
and Control = LONG_TERM

If Range Extension on both side,
Then Day_Type = Neutral_Day
and Control = SHORT_TERM

If Range is approximately the same as INITIAL BALANCE,
Then Day_Type = Normal
and Control = SHORT_TERM