IB Extension Set Up- The C Side

The C side extension Play

In the Trading room of Vtrender we have been tracking for quite some time a variation of an Initial Balance setup which we call a C side extension  .

The set up is that after an Initial Balance ( IB) is formed in the first hour, we are on the look out for range extensions in the next 30 minutes.When such extensions happen in the period between 10.15 am and 10.45 am , we are then looking for the market to come back into the IB, following which we get a trade setup activated which takes the market to the other extreme of the IB.Hope Fully this chart would explain it better :

C Ib Extension Set Up- The C Side
Where do I get the above chart?

Before you proceed further, stop for a minute and open a new tab in your browser.

Let’s look at where to get these charts first.

Head over to the MarketProfile charts section on this website and do a quick one time registration to get free access to the charts.

Yes charts and live and update during market hours.

Link up at –https://mplite.vtrender.com/


So how does this work?

The Orange alphabets on the charts as A and B  are the Initial balance (IB) or the first 60 minutes of the day.

Time wise it is being represented by the period the market traded between 09.15 am and 09.45 am as A Period and the period between 09.45 am and 10.15 am as B period.

The alphabet C are the next 30 minutes or the period between 10.15 and 10.45 am.

The IB is marked in yellow on the chart.


If after 10.15 am,  it enters IB again from day high to below IBH it is a short trade per the MarketProfile trade setup.

And now, the conditions!

Condition 1 : IB gets completed at 10.15.
Condition 2 : Look in period for the setup is 10.16 to 10.46, not one minute extra here or there. ( Has to stay outside IB for at least one min)
Condition 3:  Has to Break IB ( high or low) between 10.16 and 10.46.
Condition 4 : Has to come back in IB before 10.47.
That’s right, see the emphasis we place on Time. I told you, MarketProfile is about Price, Time and Volume.
When the above 4 conditions are met, we are looking for a trade which could take the market to the vwap first and in other cases to the  other IB extreme
high or low, often times the day high or low as well.
The chart above show results when the market went above IBH and came lower and in the process met all 4 conditions mentioned