OPEN-SOURCE SCRIPT
Internal Bar Strength (IBS) Strategy

█ STRATEGY DESCRIPTION
The "Internal Bar Strength (IBS) Strategy" is a mean-reversion strategy designed to identify trading opportunities based on the closing price's position within the daily price range. It enters a long position when the IBS indicates oversold conditions and exits when the IBS reaches overbought levels. This strategy was designed to be used on the daily timeframe.
█ WHAT IS INTERNAL BAR STRENGTH (IBS)?
Internal Bar Strength (IBS) measures where the closing price falls within the high-low range of a bar. It is calculated as:
Pine Script®
- **Low IBS (≤ 0.2)**: Indicates the close is near the bar's low, suggesting oversold conditions.
- **High IBS (≥ 0.8)**: Indicates the close is near the bar's high, suggesting overbought conditions.
█ SIGNAL GENERATION
1. LONG ENTRY
A Buy Signal is triggered when:
2. EXIT CONDITION
█ ADDITIONAL SETTINGS
█ PERFORMANCE OVERVIEW
The "Internal Bar Strength (IBS) Strategy" is a mean-reversion strategy designed to identify trading opportunities based on the closing price's position within the daily price range. It enters a long position when the IBS indicates oversold conditions and exits when the IBS reaches overbought levels. This strategy was designed to be used on the daily timeframe.
█ WHAT IS INTERNAL BAR STRENGTH (IBS)?
Internal Bar Strength (IBS) measures where the closing price falls within the high-low range of a bar. It is calculated as:
IBS = (Close - Low) / (High - Low)
- **Low IBS (≤ 0.2)**: Indicates the close is near the bar's low, suggesting oversold conditions.
- **High IBS (≥ 0.8)**: Indicates the close is near the bar's high, suggesting overbought conditions.
█ SIGNAL GENERATION
1. LONG ENTRY
A Buy Signal is triggered when:
- The IBS value drops below the Lower Threshold (default: 0.2).
- The signal occurs within the specified time window (between `Start Time` and `End Time`).
2. EXIT CONDITION
- A Sell Signal is generated when the IBS value rises to or above the Upper Threshold (default: 0.8). This prompts the strategy to exit the position.
█ ADDITIONAL SETTINGS
- Upper Threshold: The IBS level at which the strategy exits trades. Default is 0.8.
- Lower Threshold: The IBS level at which the strategy enters long positions. Default is 0.2.
- Start Time and End Time: The time window during which the strategy is allowed to execute trades.
█ PERFORMANCE OVERVIEW
- This strategy is designed for ranging markets and performs best when prices frequently revert to the mean.
- It is sensitive to extreme IBS values, which help identify potential reversals.
- Backtesting results should be analyzed to optimize the Upper/Lower Thresholds for specific instruments and market conditions.
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免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。