How can we trade in accordance with normal IB patterns?

<p id="isPasted">To effectively trade using Initial Balance (IB) patterns, focus on identifying normal days where the IB doesn't significantly expand and then consider trading within the range of the IB. You can also look for price breakouts from the IB in trending markets, especially when the IB is formed within a larger trend, according to HDFC Sky.&nbsp;</p><p><span style="color: inherit; background-color: transparent;">The Initial Balance (IB) is the price range established during the first hour or 30 minutes of the trading session, according to TradingView.</span></p><p>It's a crucial reference point for understanding market sentiment and potential price movements for the rest of the day.</p><p>In a normal day, the IB doesn't expand significantly, and the price tends to stay within its boundaries.&nbsp;</p><p>Trading Strategies Based on IB Patterns:</p><p>1. Normal Day Trading:</p><p>Identify: Determine if the day is a normal day where the IB range remains relatively stable.&nbsp;</p><p>Range Trading: Buy near the lower boundary of the IB and sell near the upper boundary.&nbsp;</p><p>Avoid: Breakout trading is generally less effective on normal days.&nbsp;</p><p>2. Trending Day Trading:</p><p>Identify: Observe if the price is already trending before the IB forms or if the IB forms within a larger established trend.&nbsp;</p><p>Trend Continuation: Look for price to break out of the IB in the direction of the prevailing trend.&nbsp;</p><p>Entry Points: Consider entering trades after a pullback to the IB level, using candlestick patterns like Pin Bar, Engulfing, or Harami patterns for confirmation.&nbsp;</p><p>Stop-Loss: Place stop-loss orders at the low or high of the entry candle for Pin Bar patterns, or at the high or low of the larger candle for Harami or Engulfing patterns.&nbsp;</p><p>3. Double Inside Bar Pattern:</p><p>Identify: Look for a double inside bar pattern, where a smaller inside bar forms within another inside bar.&nbsp;</p><p>Avoid: Avoid trading these patterns in congested areas, according to Trading Setups Review.&nbsp;</p><p>Breakout Focus: Focus on the closing price to confirm breakouts and respect the prevailing trend.&nbsp;</p><p>General Tips for Trading IB Patterns:</p><p>Risk Management:</p><p>Employ robust risk management strategies, such as the 3-5-7 rule, to limit potential losses.&nbsp;</p><p>Trading Discipline:</p><p>Stick to your chosen strategy and avoid emotional trading decisions.&nbsp;</p><p>Adaptability:</p><p>Monitor market conditions and price action, and be prepared to adjust your trading approach as needed.&nbsp;</p><p>Continuous Learning:</p><p>Develop your understanding of market dynamics and price action to refine your trading strategies.</p>