The Internal Bar Strength (IBS) Metatrader 4 forex indicator is a technical tool designed by Volker Knapp.
The IBS indicator is depicted as a red line that swirls within an indicator window, along with fixed levels between 0 and 100.
The blue horizontal lines marking the 40.00 and 60.00 levels was introduced for the sake of a better understanding of the IBS indicator.
The indicator follows a simple calculation where the moving average of the values of the internal bars strength represents the ratio (Close-Low)/(High-Low) * 100% for each of them.
The IBS indicator uses a period that is set at a default value of five bars.
Use the indicator for scalping, day trading and swing trading purposes.
Use in agreement with a trend following forex indicator to get the most out of it.
Download the “IBS.ex4” MT4 indicator
The EUR/USD M30 chart below displays the Internal Bar Strength (IBS) Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the red line of the Internal Bar Strength (IBS) Metatrader 4 forex indicator breaks above the 40.00 level.
Sell Signal: Go short when the red line of the Internal Bar Strength (IBS) Metatrader 4 forex indicator dips below the 60.00 level.
Exit buy trade: Close all buy orders if while a bullish trend is running, price enter the overbought region i.e. the red line of the Internal Bar Strength (IBS) indicator breaks above the 60.00 level.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the market becomes oversold i.e. the red line of the Internal Bar Strength (IBS) indicator dips below the 40.00 level.
Tips: When the red line of the Internal Bar Strength (IBS) indicator crosses the 60 and 40 levels, it is an indication of overbought and oversold market conditions respectively, thereby offering traders big clues to buying and selling the desired currency pair.
Download the “IBS.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (Per), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the IBS.ex4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)