Initial Balance Auction Intelligence by DGT — Indicator by dgtrd — TradingView

ɪʙAUC is an Auction Market Theory framework that tracks how price develops after the Initial Balance (IB), rather than treating it as static support/resistance. Using configurable post-IB auction windows, it identifies:

Acceptance · Failed Auction · Retest / Continuation · Rejection · Two-Sided Auction

combining price location, extension relative to IB width, close strength, and retest behavior – producing Regime, Bias, Phase, Auction State, cumulative Pressure, Quality, Maturity, and Invalidation levels, with an optional dashboard and alerts on confirmed transitions.

Initial Balance & Auction States

The Initial Balance (IB) is the range established during the selected opening session, with IBH / IBL as boundaries and IBM as midpoint. Session and timezone are configurable (chart Exchange timezone or a range of predefined markets), allowing the framework to adapt to different markets and sessions.

Once the IB completes, ɪʙAUC evaluates each subsequent auction window (5/10/15/30 min, configurable) against it:

* PROBING ABOVE/BELOW – live, tentative; price beyond a boundary while the window is still forming
* ACCEPTED ABOVE/BELOW – a completed window closes outside the IB
* FAILED ABOVE/BELOW – price extends beyond a boundary but closes back inside
* CONTINUATION – after acceptance, a retest of that boundary holds
* REJECTION – after acceptance, a retest fails and price moves back through it
* TWO-SIDED AUCTION – both IB extremes tested and rejected – a more rotational, conflicted read

Only completed windows confirm a state transition; probing states are live/developing information.

Visuals: Decision Candles & Projections

Decision Candles (optional) visualize the developing auction window’s High/Low and Open/Close, highlighted when the window interacts with IBH or IBL – live information until the window completes.

Initial Balance Projections (optional) extend reference levels above IBH and below IBL at 0.5×, 1.0×, and 1.5× the IB range. These are reference levels for evaluating potential range extension – not predicted or guaranteed targets.

Metrics & Dashboard

Conviction/Quality combines close strength, IB-relative extension, and retest behavior to grade confirmed events – Acceptance/Continuation use acceptance criteria, while Failed/Rejection/Two-Sided use failure criteria. Maturity tracks how long a state has held (Early → Developing → Mature → Exhausted).

Pressure is a bounded −100..+100 reading, accumulated across the whole session from confirmed transitions. Bias reflects only the current event. These are deliberately different questions and can disagree – Pressure is not order-flow, volume, or a probability.

Regime (session character: Balanced / Rotational / Expansion / Failed Expansion / Trend Auction) and Phase (lifecycle stage: Balance → Probe → Acceptance → Retest → Expansion/Rotation → Exhaustion) provide higher-level context on top of the raw auction state.

The optional dashboard shows Regime, Bias, Phase, Auction State, Pressure, Quality, and Next (the next structural event or retest level plus its invalidation price), each with a contextual tooltip.

How to Read It

ɪʙAUC is a contextual framework, not a standalone signal. Read Regime, Bias, Phase, Pressure, Quality, and Invalidation together – acceptance can support continuation, failed auctions can signal reversion toward balance, and two-sided auctions can favor rotation.

Alerts fire on confirmed transitions (Accepted/Failed Above/Below, Two-Sided, Continuation, Rejection) and include the relevant level, instrument, and IB session context.

Important Notes

• Designed for intraday timeframes ≤ 30 minutes; the engine operates only when this condition is met.
• Session and timezone should match the market being analyzed.
• Uses 1-minute lower-timeframe data on higher intraday charts for precise auction-window construction.
• Live probes/Decision Candles are developing information; state transitions confirm only when the selected auction window completes.

DISCLAIMER

This script is intended for informational and educational purposes only. It does not constitute financial, investment, or trading advice. All trading decisions made based on its output are solely the responsibility of the user.