Monday Tuesday Initial Balance and Range Projections

This indicator is based on Stacey Burke’s definition of Initial Balance, where Monday and Tuesday together establish the Initial Balance for the trading week.

The high and low formed across Monday and Tuesday define the Initial Balance. Once Tuesday closes, this range is locked in and used as a structural reference for the remainder of the week.

What the Indicator Displays
Initial Balance High (Monday–Tuesday high)
Initial Balance Low (Monday–Tuesday low)

Optional midpoint

Optional range projections:
0.5 range extension to the upside/downside
1.0 range extension to the upside/downside

These extensions are calculated using the Monday–Tuesday range, projected above the Initial Balance High.

Why This Matters

In a large percentage of weeks:
The weekly high or low is established by Monday or Tuesday
One side of the Initial Balance tends to hold, while the other may break and trend
The range provides context for high-probability setups, not trade signals

Price will typically:
Reject the Initial Balance extremes (reversal / three-day setup)
Break and hold outside the balance (trend week)
Rotate within the balance (consolidation)

How to Use It

This tool is designed for context and structure, supporting:

Three Day Setups
First Green / First Red Days
False breaks
Weekly pump-and-dump / dump-and-pump scenarios

Trade execution should still be aligned with session timing, 15-minute structure, price action confirmation, and news awareness.