Range Extension (RE)
Definition of 'Range Extension (RE)'
After the market opens we wait until two brackets have completed in order to establish the Initial Balance (IB). The IB demarcates the High and Low for the first two brackets of trading which is usually the first one hour of trading but does not have to be.
If the market moves above or below this established High or Low we have Range Extension. Some traders do not consider Range Extension to be significant (and tradable) until the market has traded a number of ticks beyond the IB range. In the E-mini S&P500 this value is often considered to be 3 ticks.
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