Internal Bar Strength Indicator — Strategy by Fadior

The internal bar strength or (IBS) is an oscillating indicator which measures the relative position of the close price with respect to the low to high range for the same period.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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Want to use this script on a chart?

//@version=2
strategy("IBS", initial_capital=10000, overlay=false, pyramiding=5)

strategy.risk.allow_entry_in(strategy.direction.long)


src = close
ibs = (close - low) / (high - low) * 100

longCondition = ibs < 17
if (longCondition)
    strategy.entry("My Long Entry Id", strategy.long)

shortCondition = close > high[1]
if (shortCondition)
    strategy.entry("My Short Entry Id", strategy.short)