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Technical Studies Reference


Initial Balance

The Initial Balance study calculates and displays lines on the chart calculated from the High to Low price range for the specified period of time set with the study Inputs.

For example, if the Initial Balance Type is set to Daily and the Start Time is set to 9:30:00 and the End Time is set to 9:59:59, then the price range for this time period is the Initial Balance.

This study supports up to 6 extension lines above and below the High and Low Initial Balance lines. The multiplier for these lines is set through the Extension Multiplier # study Inputs.

Alternatively, it is possible to use the High/Low for Time Period study to calculate and draw Initial Balance lines.

The time period specified by the Start Time and End Time study Inputs, that the Initial Balance is calculated from cannot be less than the timeframe of the chart bars. And the timeframe of the chart bars must be evenly divisible into the Initial Balance time period for the Initial Balance lines to be accurate.

For example, if the Initial Balance is set to be a time period of 10 minutes, it is not possible to calculate this from chart bars with a 30 minute timeframe per bar.

For example, of the Initial Balance lines for a 10 minute period will not be completely accurate if the chart bars are 3 minutes because 3 does not divide evenly into 10. The Initial Balance lines will also not be precise on chart bars which have a variable time period per bar like Number of Trades, Volume, Range, Reversal, Renko, Delta Volume, Price Change, Point and Figure Bars. However, there is a solution to this and that is to overlay the Initial Balance lines using the Study/Price Overlay study from a chart with the appropriately set time period per bar.

Inputs

  • Initial Balance Type: This Input sets the overall timeframe of the Initial Balance calculations. The choices are Daily, Weekly, Weekly Include Sundays, Intraday.

    When this Input is set to Intraday, then the Initial Balance lines repeat by the time specified by the Intraday: Num Minutes Input setting, within the Start Time to End Time time range.
  • Start Time: This Input specifies the starting time for the Initial Balance time period when the Initial Balance Type is set to Daily or Intraday.

    If the time range between the Start Time and End Time is not included in a particular trading day on the chart, then there will not be any Initial Balance lines displayed for that trading day. The prior trading day will not be referenced in this case. The starting and ending of a trading day is defined by the Session Times settings for the chart.
  • End Time: This Input specifies the ending time for the Initial Balance time period when the Initial Balance Type is set to Daily or Intraday. This ending time is included in the time range.

    Also refer to the information provided with the Start Time Input.
  • Weekly: Num Days: In the case of when the Initial Balance Type is set to Weekly, this specifies the number of days from the start of the week that the Initial Balance is determined from.
  • Round Extensions to Tick Size: When this Input is set to Yes, then the resulting values of each of the Extension lines is rounded to the nearest chart Tick Size.
  • Number of Days to Calculate: This Input specifies the number of days to calculate and display Initial Balance lines for. This is relative to the last date in the chart. This specifies the actual number of calendar days from the last date in the chart. Therefore, if the last day in the chart is 2016-01-30 and Number of Days to Calculate is set to 10, then the first date that the Initial Balance lines will be calculated for and displayed on is 2016-01-21.
  • Intraday: Num Minutes: When the Initial Balance Type Input is set to Intraday, then the Initial Balance lines repeat by the time specified by the Intraday: Num Minutes Input setting, within the Start Time to End Time time range. If the number of minutes specified with this Input exceeds the time range between Start Time to End Time, then no lines will display.
  • Extension Multiplier 1: This description applies to this Input and the following Extension Multiplier # Inputs.

    The difference between the Initial Balance (IB) High and the Initial Balance (IB) Low Subgraphs is calculated. This is the Range. This Range is multiplied by the value of the Extension Multiplier 1. This amount is then added to the Initial Balance High value and subtracted from the Initial Balance Low value. These results then are drawn as the extension lines.

    By default, all of the extension are not visible because the Draw Style for them is set to Ignore . To see a particular extension line, go to the Subgraphs tab of the Study Settings window and set the Draw Style for it to Line.
  • Extension Multiplier 2: Refer to the description for the Extension Multiplier 1 Input.
  • Extension Multiplier 3: Refer to the description for the Extension Multiplier 1 Input.
  • Extension Multiplier 4: Refer to the description for the Extension Multiplier 1 Input.
  • Extension Multiplier 5: Refer to the description for the Extension Multiplier 1 Input.
  • Extension Multiplier 6: Refer to the description for the Extension Multiplier 1 Input.

*Last modified Tuesday, 02nd January, 2018.