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:

• 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.