IBI Intermarket ZScore

IBI Intermarket (Z-Score)

IBI Intermarket (Z-Score) measures the chart symbol’s relative strength by comparing it to a benchmark/leader symbol (or a list of drivers) that can have a direct or inverse relationship.
It shows this difference as a Z-Score, making it easier to read across any symbol and timeframe.

What problem does it solve?
Comparing markets by price alone is difficult because each symbol has different volatility. IBI standardizes this comparison and highlights when the symbol is stronger or weaker than the leader or drivers.

How it works (4 steps)

1. Log Returns
   Computes log returns for:

   • the current chart symbol, and

   • the benchmark/leader (or drivers list)

2. Spread
   Builds a differential return:
   Spread = Return(symbol) − Return(leader/drivers)

3. Belly Window (Sensitivity)
   Accumulates the spread over a short window (Window Belly) to form a “belly” series (raw displacement).

4. Long Window (Normalization)
   Converts the belly series into a Z-Score using a longer window (Window Long), resulting in the IBI line.

Output: a single Z-Score line in a separate window.

Interpretation (simple and practical)

• IBI > 0 → the current symbol is outperforming the leader/drivers

• IBI < 0 → the current symbol is underperforming the leader/drivers

Zones (default)

• Strong: ±1.8

• Extreme: ±2.0

These zones are reference levels to help identify stretched relative conditions (not a guarantee of reversal).
A Z clamp is included to keep the display readable in rare outlier conditions.

Typical use cases

• Intermarket Divergence: detect when the symbol moves differently than its leader/drivers

• Stretched Relative Conditions: identify when the displacement reaches strong/extreme zones

• Flow Confirmation: check if relative strength remains sustained above/below zero

Inputs (overview)

Core

• Benchmark/Leader Symbol
  The main reference symbol (example: an index, commodity, FX pair, crypto dominance proxy, etc.)

• Default Relationship

  • Direct: leader moves in the same direction (no sign inversion)

  • Inverse: leader is negatively correlated (return sign is inverted)

Advanced (optional): Drivers List

Enable Use Drivers List to replace the single leader with multiple weighted drivers.

Format:
SYM:inverse|direct:weight;SYM:inverse|direct:weight

Example:
DXY:inverse:1.0;XAUUSD:direct:0.7;US10Y:inverse:0.5

This allows you to model a symbol against a custom intermarket basket.

Windows

• Window Belly → sensitivity (short accumulation)

• Window Long → Z-Score normalization (stability)

Visual

• decimal digits, strong/extreme levels, Z clamp

Notes / Requirements

• Works on any timeframe and symbol as long as the benchmark/drivers symbols are available in your MetaTrader 5 broker’s symbol list.

• Uses time-synchronized bars (intermarket alignment by bar time) to keep comparisons consistent.

• This is an analytical tool. Always combine with your own risk management.

Recommended screenshots (for the product page)

1. Overview: price chart + IBI with strong/extreme levels visible

2. Divergence example: clear moment where price trend differs from IBI direction

3. Extreme zone example: IBI reaching ±2.0 with subsequent market behavior

4. Inputs window: show the parameters in English and the drivers format

Developed by Fernando Augusto Poltronieri