Initial balance - weeklyWeekly Initial Balance (IB) — Indicator Description
The Weekly Initial Balance (IB) is the price range (High–Low) established during the week’s first trading session (most commonly Monday). You can measure it over the entire day or just the first X hours (e.g. 60 or 120 minutes). Once that session ends, the IB High and IB Low define the key levels where the initial weekly range formed.
Why Measure the Weekly IB?
Week-Opening Sentiment:
Monday’s range often sets the tone for the rest of the week. Trading above the IB High signals bullish control; trading below the IB Low signals bearish control.
Key Liquidity Zones:
Large institutions tend to place orders around these extremes, so you’ll frequently see tests, breakouts, or rejections at these levels.
Support & Resistance:
The IB High and IB Low become natural barriers. Price will often return to them, bounce off them, or break through them—ideal spots for entries and exits.
Volatility Forecast:
The width of the IB (High minus Low) indicates whether to expect a volatile week (wide IB) or a quieter one (narrow IB).
Significance of IB Levels
Breakout:
A clear break above the IB High (for longs) or below the IB Low (for shorts) can ignite a strong trending move.
Fade:
A rejection off the IB High/Low during low momentum (e.g. low volume or pin-bar formations) offers a high-probability reversal trade.
Mid-Point:
The 50% level of the IB range often “magnetizes” price back to it, providing entry points for continuation or reversal strategies.
Three Core Monday IB Strategies
A. Breakout (Open-Range Breakout)
Entry: Wait for 1–2 candles (e.g. 5-minute) to close above IB High (long) or below IB Low (short).
Stop-Loss: A few pips below IB High (long) or above IB Low (short).
Profit-Target: 2–3× your risk (Reward:Risk ≥ 2:1).
Best When: You spot a clear impulse—such as a strong pre-open volume spike or news-driven move.
B. Fade (Reversal at Extremes)
Entry: When price tests IB High but shows weakening momentum (shrinking volume, upper-wick candles), enter short; vice versa for IB Low and longs.
Stop-Loss: Just beyond the IB extreme you’re fading.
Profit-Target: Back toward the IB mid-point (50% level) or all the way to the opposite IB extreme.
Best When: Monday’s action is range-bound and lacks a clear directional trend.
C. Mid-Point Trading
Entry: When price returns to the 50% level of the IB range.
In an up-trend: buy if it bounces off mid-point back toward IB High.
In a down-trend: sell if it reverses off mid-point back toward IB Low.
Stop-Loss: Just below the nearest swing-low (for longs) or above the nearest swing-high (for shorts).
Profit-Target: To the corresponding IB extreme (High or Low).
Best When: You see a strong initial move away from the IB, followed by a pullback to the mid-point.
Usage Steps
Configure your session: Measure IB over your chosen Monday timeframe (whole day or first X hours).
Choose your strategy: Align Breakout, Fade, or Mid-Point entries with the current market context (trend vs. range).
Manage risk: Keep risk per trade ≤ 1% of account and maintain at least a 2:1 Reward:Risk ratio.
Backtest & forward-test: Verify performance over multiple Mondays and in a paper-trading environment before going live.
Weeklyforecast
DAYOFWEEK performance1 -Objective
"What is the ''best'' day to trade .. Monday, Tuesday...."
This script aims to determine if there are different results depending on the day of the week.
The way it works is by dividing data by day of the week (Monday, Tuesday, Wednesday ... ) and perform calculations for each day of the week.
1 - Objective
2 - Features
3 - How to use (Examples)
4 - Inputs
5 - Limitations
6 - Notes
7 - Final Tooughs
2 - Features
AVG OPEN-CLOSE
Calculate de Percentage change from day open to close
Green % (O-C)
Percentage of days green (open to close)
Average Change
Absolute day change (O-C)
AVG PrevD. Close-Close
Percentage change from the previous day close to the day of the week close
(Example: Monday (C-C) = Friday Close to Monday close
Tuesday (C-C) = Monday C. to Tuesday C.
Green % (C1-C)
Percentage of days green (open to close)
AVG Volume
Day of the week Average Volume
Notes:
*Mon(Nº) - Nº = Number days is currently calculated
Example: Monday (12) calculation based on the last 12 Mondays. Note: Discrepancies in numbers example Monday (12) - Friday (11) depend on the initial/end date or the market was closed (Holidays).
3 - How to use (Examples)
For the following example, NASDAQ:AAPL from 1 Jan 21 to 1 Jul 21 the results are following.
The highest probability of a Close being higher than the Open is Monday with 52.17 % and the Lowest Tuesday with 38.46 %. Meaning that there's a higher chance (for NASDAQ:AAPL ) of closing at a higher value on Monday while the highest chance of closing is lower is Tuesday. With an average gain on Tuesday of 0.21%
Long - The best day to buy (long) at open (on average) is Monday with a 52.2% probability of closing higher
Short - The best day to sell (short) at open (on average) is Tuesday with a 38.5% probability of closing higher (better chance of closing lower)
Since the values change from ticker to ticker, there is a substantial change in the percentages and days of the week. For example let's compare the previous example ( NASDAQ:AAPL ) to NYSE:GM (same settings)
For the same period, there is a substantial difference where there is a 62.5% probability Friday to close higher than the open, while Tuesday there is only a 28% probability.
With an average gain of 0.59% on Friday and an average loss of -0.34%
Also, the size of the table (number of days ) depends if the ticker is traded or not on that day as an example COINBASE:BTCUSD
4 - Inputs
DATE RANGE
Initial Date - Date from which the script will start the calculation.
End Date - Date to which the script will calculate.
TABLE SETTINGS
Text Color - Color of the displayed text
Cell Color - Background color of table cells
Header Color - Color of the column and row names
Table Location - Change the position where the table is located.
Table Size - Changes text size and by consequence the size of the table
5 - LIMITATIONS
The code determines average values based on the stored data, therefore, the range (Initial data) is limited to the first bar time.
As a consequence the lower the timeframe the shorter the initial date can be and fewer weeks can be calculated. To warn about this limitation there's a warning text that appears in case the initial date exceeds the bar limit.
Example with initial date 1 Jan 2021 and end date 18 Jul 2021 in 5m and 10 m timeframe:
6 - Notes and Disclosers
The script can be moved around to a new pane if need. -> Object Tree > Right Click Script > Move To > New pane
The code has not been tested in higher subscriptions tiers that allow for more bars and as a consequence more data, but as far I can tell, it should work without problems and should be in fact better at lower timeframes since it allows more weeks.
The values displayed represent previous data and at no point is guaranteed future values
7 - Final Tooughs
This script was quite fun to work on since it analysis behavioral patterns (since from an abstract point a Tuesday is no different than a Thursday), but after analyzing multiple tickers there are some days that tend to close higher than the open.
PS: If you find any mistake ex: code/misspelling please comment.
