Summary: 

• The initial balance indicator in Thinkorswim helps identify the opening range of a security on a particular day.
• The indicator plots the high and low prices of the first 30 minutes of trading, and the range between them is considered the initial balance.
• Traders can use this information to make decisions about entering or exiting trades, as well as setting stop-loss and profit-taking orders.

In Thinkorswim, an initial balance indicator is a tool that helps identify the opening range of a security on a particular day. The indicator plots the high and low prices of the first 30 minutes of trading, and the range between them is considered the initial balance. Traders can use this information to make decisions about entering or exiting trades, as well as setting stop-loss and profit-taking orders. The initial balance indicator can be found in the 'Studies' section of the Thinkorswim platform, and can be applied to charts of various timeframes (e.g. 5-minute, hourly, daily).

Using the initial balance indicator in Thinkorswim is relatively straightforward.

Here is a step-by-step guide:

1. Open the Thinkorswim platform and navigate to the chart of the security you want to analyze.
2. Go to the 'Studies' menu located on the top menu bar and select the 'Edit Studies' option.
3. In the 'Edit Studies' window, click on the 'Add Study' button.
4. In the 'Add Study' window, select the 'Initial Balance' indicator from the list of available indicators.
5. In the 'Initial Balance' settings window, you can customize the indicator by adjusting the settings such as the number of bars, color, etc.
6. Click 'OK' to apply the indicator to the chart.
7. The initial balance indicator will now appear on the chart as a shaded area between the high and low prices of the first 30 minutes of trading.
8. Traders can use the information provided by the initial balance indicator to make decisions about entering or exiting trades, as well as setting stop-loss and profit-taking orders.
9. Note: You can also customize the time range for the indicator, for example, you can change it from 30 minutes to 60 minutes or 15 minutes, etc. It's all based on your preference and trading strategy.

Our technical analysis community of smart traders like your self. Can provide the necessary knowledge and resources to excel in trading.