One of the anchor playbook set-ups we encourage developing traders to look for is called an IB EXT FADE (initial balance extension fade). This is means we wait for the first hour of trading to complete, see extension of range beyond that range of that first hour and then take the counter position to the extension to target a profile reference back inside the first hour’s range.

Below is an example of an IB EXT FADE in Crude oil futures we took together as a trading community. In this video we replay the tape to walk you through the anticipation, preparation, and execution of the trade.