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Extension (IB Extension)

Price movement beyond the initial balance, indicating directional conviction.

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Extension (IB Extension)

Price movement beyond the initial balance, indicating directional conviction.
Extensions are measured in multiples of the Initial Balance range (1 IB, 2 IB, etc.). Markets typically extend 1-2 IB on normal trend days, while stronger trends may reach 3+ IB extensions. The ease with which price extends beyond the IB offers insight into the strength of the controlling party (buyers or sellers).

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