New edge proposed: accumulation_manipulation_distribution — E8 Intelligence Research

Abstract

{ "name": "accumulation_manipulation_distribution", "source": "ICT (Inner Circle Trader) / Smart Money Concepts", "type": "entry_engine", "rule": "Enter short after a 3-bar rally above the prior session's high where the third bar closes below its midpoint (manipulation), then price breaks below the low of the first bar of the rally (distribution); stop loss above the third bar's high, target 1:1 risk-to-reward or prior swing low.", "pseudocode": "if bar(-2).high > prev_day_high and bar(-1).high > bar(-2).high and bar(0).high > bar(-1).high and bar(0).close < (bar(0).high+bar(0).low)/2 then entry_signal = true; entry_price = min(bar(-2).low, bar(-1).low, bar(0).low); stop_loss = bar(0).high; take_profit = entry_price - (stop_loss - entry_price);", "why_it_works": "Captures the classic smart-money pattern of creating a false breakout above resistance (manipulation) to trap breakout buyers before reversing to hunt their stops (distribution) into institutional sell orders." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com