{"id":7738,"date":"2020-10-04T20:57:05","date_gmt":"2020-10-04T20:57:05","guid":{"rendered":"https:\/\/axiafutures.com\/blog\/?p=7738"},"modified":"2024-02-09T09:28:11","modified_gmt":"2024-02-09T09:28:11","slug":"initial-balance-break-led-by-other-correlated-market","status":"publish","type":"post","link":"https:\/\/axiafutures.com\/blog\/initial-balance-break-led-by-other-correlated-market\/","title":{"rendered":"Initial Balance Break Led By Other Correlated Market"},"content":{"rendered":"\n

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Initial Balance Lead By Other Correlated Market Introduction<\/h2>\n\n\n\n

In this blog post, we will look at the initial balance break led by other correlated market. But not only that. We will have a look at how a change in pace and aggressiveness of market participants can have a telling impact on the successful break of the initial balance. When structure gives us additional conviction, the initial balance trade can provide good trading opportunities. Like in the other Eurostoxx trade<\/a> which was executed by one of our Elite Trader. <\/p>\n\n\n\n

For full context of this post, please watch the video down below:<\/p>\n\n\n\n

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Initial Balance break video with Dax and Eurostoxx<\/figcaption><\/figure>\n\n\n\n

Clues Leading To Successful Break Of Initial Balance<\/h2>\n\n\n\n

Market Context For The Initial Balance Break<\/h3>\n\n\n\n

As the title of this post suggests, one of the key nuances apart from structure and price ladder action you could lean on during this initial balance break was a correlated movement between EuroStoxx and DAX. DAX was in this instance leading EuroStoxx and that could have increased your conviction in holding onto your breakout trade in EuroStoxx.<\/p>\n\n\n\n

Now let’s have a look at how the break developed and what clues you could collect early on to get onto this trade. On the left side, you have an image of the EuroStoxx chart and Dax chart on the right. The initial balance is highlighted with yellow box (1) and increased average volume down below also in the yellow box (2).<\/p>\n\n\n\n

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Chart of STOXX and DAX market before and after the Initial Balance break<\/figcaption><\/figure>\n\n\n\n

Here is the list of clues you could collect prior to the break of EuroStoxx (Left), to have a higher conviction on the break of the IB:<\/p>\n\n\n\n