The Internal Bar Strength Indicator is pretty basic but very intuitive. Most stocks that close near their high of the day tend to fall the next day and stocks that close near their low tend to rise the next day. This indicator has very similar buy and sell signals as the RSI. Buy when the indicator rises above its signal or if the indicator is in the red zone and...
The IBS (Internal Bar Strength) as we know it, calculates only correctly on the long side. When the candle closes in loss, the original IBS still uses the upper wick.
This IBS checks first if its an up or down candle and then uses the top or bottom wick to calculate the IBS.
The yellow line is the corrected IBS, the blue line the original