Initial Balance indicator shows important psychological fibonacci levels, which are based on time setup. You can use first trading hour of concrete financial instrument or session (Asian, Europe or US) as initial balance. This indicator is used for scalping techniques on M1 chart as well as for intraday trading on higher timeframes. Basic idea is to catch moves from IB levels to the main trend of financial instrument. If IB is big, the market tends to go up and down in IB zone, if IB is low, market tends to break IB and continue trend.
After you choose time for initial balance, fibonacci levels are used to plot levels in direction of initial move - if market will go up, 100% of move is on top of initial balance - on high and 0% is on low. You can also easily add your own levels or multiples of IB. Basic levels are: 0.0, 0.5, 1.0, -1.0, -1.618,-2, -3.236,2, 3.236, 1.618, 1.5, 3,-3, -1.5
- Drawing - enable drawing of IB levels
- Levels - fibonacci levels which are used, separated by comma
- Color - color of levels
- Line Style - style of line - solid, dash, dot, dashdot, dashdotdot.
- Line Width - width of line, only valid for solid line.
- Text Size - size of text labels
- Distance, Px - distance of text labels from levels
- Rectangle Color - color of initial balance rectangle
- Hour Start - start hour of initial balance
- MinStart - start minute of initial balance
- Hour End - end hour of initial balance
- Min End - end minute of initial balance
- # day - number of days back, where initial balance will be shown
Pay attention on time setup - if you want to setup IB from 8:00 to 9:00 exactly, you have to select from 8:00 to 8:59. The candle on M1 8:59 finish exactly at 9:00 in MetaTrader 4. Also check your platform timezone - if it is shifted, adjust the time in settings.