The Internal Bar Strength (IBS) Indicator [Including Quantified Strategies]

The Internal Bar Strength indicator (IBS) has worked remarkably well for over two decades. We can only guess why, but the stock market has been highly mean-reverting during this period, and this has of course given the IBS a nice tailwind. IBS is simply an indicator where you buy on weakness and sell on strength,…

S&P 500 Mean Reversion Using IBS and RSI (Classical Mean Reversion Strategy S&P 500)

Below is a simple and easy trading strategy to implement in SPY or the S&P 500: The classical mean reversion strategy in the S&P 500 In plain English the strategy reads like this: IBS (internal bar strength) must be lower than 0.25 (using daily bars). RSI (21) must be below 45. If 1 and 2…

Internal Bar Strength (IBS) Trading Strategy In Consumer Staples (XLP)

Internal Bar Strength (IBS) Trading Strategy In Consumer Staples (XLP)

The internal bar strength is defined as follows: (close-low)/(high-low). This indicator is very useful on mean revertive trading instruments, like for example XLP. This article contains a simple but quite effective trading strategy using the internal bar strength indicator: The internal bar strength trading strategy In plain English the strategy is like this: Yesterday’s IBS…