OPEN-SOURCE SCRIPT
IBS Internal Bar Strength (Intraday)
# IBS — Internal Bar Strength (Intraday)
### TradingView Publication Description
*by imhurtin | theTRADINGDECK*
---
## What Is IBS?
**Internal Bar Strength (IBS)** measures where price closed *within* the current bar's range.
**Formula:** `IBS = (Close - Low) / (High - Low)`
The result is a value between 0 and 1:
- **IBS = 0** → Price closed exactly at the low (maximum weakness)
- **IBS = 1** → Price closed exactly at the high (maximum strength)
- **IBS = 0.5** → Price closed at the midpoint (neutral)
---
## How To Read It
| IBS Value | Meaning | Bias |
|-----------|---------|------|
| Below 0.3 | Closed in bottom 30% of range | Potential bounce / long setup |
| 0.3 – 0.7 | Closed near midrange | Neutral — no edge |
| Above 0.7 | Closed in top 70% of range | Potential fade / short setup |
**Green bar / background** = IBS in oversold territory (below 0.3)
**Red bar / background** = IBS in overbought territory (above 0.7)
**Triangle up** = IBS crossing back above 0.3 (bounce signal)
**Triangle down** = IBS crossing back below 0.7 (fade signal)
---
## When To Use It
IBS works best as a **confirmation tool** — not a standalone signal. Here's when it adds real value:
### ✅ LONG SETUP (Bounce)
Use IBS < 0.3 to confirm a long when:
- Price has sold off and is at or near a key support level (VWAP, PDL, ORB low, EMA)
- Market internals are neutral or turning bullish (TTICK recovering, AADD > -200)
- Price action shows a hammer, pin bar, or inside bar at support
- IBS crosses back above 0.3 = signal that sellers are losing grip
**Entry:** IBS crosses above 0.3 + candle body closes back above support
**Stop:** Below the low of the signal candle
**Target:** VWAP or next resistance level
---
### ✅ SHORT SETUP (Fade)
Use IBS > 0.7 to confirm a short when:
- Price has pushed into resistance (PDH, VWAP from below, ORB high, EMA)
- Market internals are neutral or turning bearish (TTICK fading, AADD < +200)
- Price action shows a shooting star, bearish engulfing, or doji at resistance
- IBS crosses back below 0.7 = signal that buyers are exhausted
**Entry:** IBS crosses below 0.7 + candle body closes back below resistance
**Stop:** Above the high of the signal candle
**Target:** VWAP or next support level
---
## What It Does NOT Do
- ❌ IBS alone is NOT a buy or sell signal — always confirm with price action + internals
- ❌ Do not trade IBS signals against the trend — if the trend is strongly down, IBS < 0.3 bounces fail
- ❌ Do not use in the first 5–10 minutes of market open — too much noise, IBS whipsaws
- ❌ Do not use on low-volume tickers — IBS requires meaningful price action within the bar
---
## Best Timeframes
| Timeframe | Use Case |
|-----------|----------|
| **2-minute** | Precise entry timing after signal forms on 5m |
| **5-minute** | Primary signal timeframe — best balance of signal vs noise |
| **15-minute** | Swing trade confirmation or higher timeframe context |
| **Daily** | Original IBS application — mean reversion swing trades |
---
## Recommended Workflow (Intraday / 0DTE)
1. **Mark your levels** — VWAP, PDH, PDL, ORB High/Low before the trade
2. **Check market internals** — TTICK, AADD, VVOLD must support direction
3. **Watch for IBS extreme** — below 0.3 at support OR above 0.7 at resistance
4. **Wait for the cross** — IBS must cross BACK through the threshold (not just touch it)
5. **Confirm with price action** — candle body closing beyond the level seals it
6. **Enter with defined stop** — stop beyond the signal candle, minimum 1:1.5 R:R
---
## Settings
| Setting | Default | Description |
|---------|---------|-------------|
| IBS Length | 1 | Number of bars for IBS calculation (1 = current bar) |
| Smoothing (EMA) | 3 | Light smoothing to reduce noise — increase for smoother line |
| Overbought Level | 0.7 | IBS fade/short threshold |
| Oversold Level | 0.3 | IBS bounce/long threshold |
| Show Entry Signals | On | Show triangle markers on threshold crosses |
| Color Background | On | Highlight bars in extreme zones |
---
## Alerts
Two built-in alerts:
- **IBS Bounce Setup** — fires when IBS crosses above the oversold level
- **IBS Fade Setup** — fires when IBS crosses below the overbought level
Set alerts on your preferred ticker and timeframe. Recommended: SPY or QQQ on the 5-minute chart.
---
## Important Notes
This indicator is a **tool, not a strategy**. The edge comes from combining IBS with:
- Strong key levels (support/resistance)
- Market internals confirmation
- Clean price action setup
- Proper risk management
**No indicator replaces discipline.** Always define your stop before entry. If the setup doesn't meet all criteria — no trade is a good trade.
---
*Built for intraday traders. Stack the deck in your favor.*
*— theTRADINGDECK*
### TradingView Publication Description
*by imhurtin | theTRADINGDECK*
---
## What Is IBS?
**Internal Bar Strength (IBS)** measures where price closed *within* the current bar's range.
**Formula:** `IBS = (Close - Low) / (High - Low)`
The result is a value between 0 and 1:
- **IBS = 0** → Price closed exactly at the low (maximum weakness)
- **IBS = 1** → Price closed exactly at the high (maximum strength)
- **IBS = 0.5** → Price closed at the midpoint (neutral)
---
## How To Read It
| IBS Value | Meaning | Bias |
|-----------|---------|------|
| Below 0.3 | Closed in bottom 30% of range | Potential bounce / long setup |
| 0.3 – 0.7 | Closed near midrange | Neutral — no edge |
| Above 0.7 | Closed in top 70% of range | Potential fade / short setup |
**Green bar / background** = IBS in oversold territory (below 0.3)
**Red bar / background** = IBS in overbought territory (above 0.7)
**Triangle up** = IBS crossing back above 0.3 (bounce signal)
**Triangle down** = IBS crossing back below 0.7 (fade signal)
---
## When To Use It
IBS works best as a **confirmation tool** — not a standalone signal. Here's when it adds real value:
### ✅ LONG SETUP (Bounce)
Use IBS < 0.3 to confirm a long when:
- Price has sold off and is at or near a key support level (VWAP, PDL, ORB low, EMA)
- Market internals are neutral or turning bullish (TTICK recovering, AADD > -200)
- Price action shows a hammer, pin bar, or inside bar at support
- IBS crosses back above 0.3 = signal that sellers are losing grip
**Entry:** IBS crosses above 0.3 + candle body closes back above support
**Stop:** Below the low of the signal candle
**Target:** VWAP or next resistance level
---
### ✅ SHORT SETUP (Fade)
Use IBS > 0.7 to confirm a short when:
- Price has pushed into resistance (PDH, VWAP from below, ORB high, EMA)
- Market internals are neutral or turning bearish (TTICK fading, AADD < +200)
- Price action shows a shooting star, bearish engulfing, or doji at resistance
- IBS crosses back below 0.7 = signal that buyers are exhausted
**Entry:** IBS crosses below 0.7 + candle body closes back below resistance
**Stop:** Above the high of the signal candle
**Target:** VWAP or next support level
---
## What It Does NOT Do
- ❌ IBS alone is NOT a buy or sell signal — always confirm with price action + internals
- ❌ Do not trade IBS signals against the trend — if the trend is strongly down, IBS < 0.3 bounces fail
- ❌ Do not use in the first 5–10 minutes of market open — too much noise, IBS whipsaws
- ❌ Do not use on low-volume tickers — IBS requires meaningful price action within the bar
---
## Best Timeframes
| Timeframe | Use Case |
|-----------|----------|
| **2-minute** | Precise entry timing after signal forms on 5m |
| **5-minute** | Primary signal timeframe — best balance of signal vs noise |
| **15-minute** | Swing trade confirmation or higher timeframe context |
| **Daily** | Original IBS application — mean reversion swing trades |
---
## Recommended Workflow (Intraday / 0DTE)
1. **Mark your levels** — VWAP, PDH, PDL, ORB High/Low before the trade
2. **Check market internals** — TTICK, AADD, VVOLD must support direction
3. **Watch for IBS extreme** — below 0.3 at support OR above 0.7 at resistance
4. **Wait for the cross** — IBS must cross BACK through the threshold (not just touch it)
5. **Confirm with price action** — candle body closing beyond the level seals it
6. **Enter with defined stop** — stop beyond the signal candle, minimum 1:1.5 R:R
---
## Settings
| Setting | Default | Description |
|---------|---------|-------------|
| IBS Length | 1 | Number of bars for IBS calculation (1 = current bar) |
| Smoothing (EMA) | 3 | Light smoothing to reduce noise — increase for smoother line |
| Overbought Level | 0.7 | IBS fade/short threshold |
| Oversold Level | 0.3 | IBS bounce/long threshold |
| Show Entry Signals | On | Show triangle markers on threshold crosses |
| Color Background | On | Highlight bars in extreme zones |
---
## Alerts
Two built-in alerts:
- **IBS Bounce Setup** — fires when IBS crosses above the oversold level
- **IBS Fade Setup** — fires when IBS crosses below the overbought level
Set alerts on your preferred ticker and timeframe. Recommended: SPY or QQQ on the 5-minute chart.
---
## Important Notes
This indicator is a **tool, not a strategy**. The edge comes from combining IBS with:
- Strong key levels (support/resistance)
- Market internals confirmation
- Clean price action setup
- Proper risk management
**No indicator replaces discipline.** Always define your stop before entry. If the setup doesn't meet all criteria — no trade is a good trade.
---
*Built for intraday traders. Stack the deck in your favor.*
*— theTRADINGDECK*
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.