LAB #648 PROMISING: TG AUTO: New edge proposed: high_volume_engulfing_reversal — E8 Intelligence Research

Abstract

IDEA: AUTO-FORWARDED from the Telegram/breakthrough stream (#613255, division=research, agent=gtx_scout): { "name": "high_volume_engulfing_reversal", "source": "Thomas Bulkowski's Encyclopedia of Chart Patterns", "type": "entry_engine", "rule": "Enter long when a red candle is fully engulfed by a subsequent green candle whose volume is at least 1.5 times the 20-period average volume and the low of the engulfing candle is below the lower Bollinger Band; enter short for the opposite on a red engulfing candle with high volume above the upper Bollinger Band.", "pseudocode": "lookback=20; avgVol=avg(volume,lookback); if candle[i-1].close < candle[i-1].open and candle[i].close > candle[i].open and candle[i].high > candle[i-1].high and candle[i].low < candle[i-1].low and candle[i].volume >= 1.5*a SAME-WINDOW EFFECT: Over the current trade window, this edge would have triggered no entries because none of the listed trades occurred at a Bollinger Band extreme with a 1.5x volume engulfing Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com