Average High-Low Range + IBS Reversal Strategy

█ STRATEGY DESCRIPTION
The "Average High-Low Range + IBS Reversal Strategy" is a mean-reversion strategy designed to identify potential buying opportunities when the price deviates significantly from its average high-low range and the Internal Bar Strength (IBS) indicates oversold conditions. It enters a long position when specific conditions are met and exits when the price shows strength by exceeding the previous bar's high. This strategy is suitable for use on various timeframes.

█ WHAT IS THE AVERAGE HIGH-LOW RANGE?
The Average High-Low Range is calculated as the Simple Moving Average (SMA) of the difference between the high and low prices over a specified period. It helps identify periods of increased volatility and potential reversal points.

█ WHAT IS INTERNAL BAR STRENGTH (IBS)?
Internal Bar Strength (IBS) is a measure of where the closing price is relative to the high and low of the bar. It is calculated as:

Pine Script®

A low IBS value (e.g., below 0.2) indicates that the close is near the low of the bar, suggesting oversold conditions.

█ SIGNAL GENERATION
1. LONG ENTRY
A Buy Signal is triggered when:

• The close price has been below the buy threshold (calculated as `upper - (2.5 * hl_avg)`) for a specified number of consecutive bars (`bars_below_threshold`).
  
• The IBS value is below the specified buy threshold (`ibs_buy_treshold`).
  
• The signal occurs within the specified time window (between `Start Time` and `End Time`).
  

2. EXIT CONDITION

• A Sell Signal is generated when the current closing price exceeds the high of the previous bar (`close > high[1]`). This indicates that the price has shown strength, potentially confirming the reversal and prompting the strategy to exit the position.
  

█ ADDITIONAL SETTINGS

• Length: The lookback period for calculating the average high-low range. Default is 20.
  
• Bars Below Threshold: The number of consecutive bars the price must remain below the buy threshold to trigger a Buy Signal. Default is 2.
  
• IBS Buy Threshold: The IBS value below which a Buy Signal is triggered. Default is 0.2.
  
• Start Time and End Time: The time window during which the strategy is allowed to execute trades.
  

█ PERFORMANCE OVERVIEW

• This strategy is designed for mean-reverting markets and performs best when the price frequently deviates from its average high-low range.
  
• It is sensitive to oversold conditions, as indicated by the IBS, which helps to identify potential reversals.
  
• Backtesting results should be analyzed to optimize the Length, Bars Below Threshold, and IBS Buy Threshold parameters for specific instruments.