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…

The Trend Is Not Your Friend In SPY/S&P 500 (and other stock indices)

The Trend Is Not Your Friend In SPY/S&P 500 (and other stock indices)

I guess most traders have heard that “the trend is your friend“. Personally, I don’t do trend-following strategies, I go the opposite way: buy weakness and sell strength – mean reversion strategies. However, this depends on the instrument you trade and of course on the time frame in trading. In general, most currencies and commodities…