New edge proposed: bear_flag_volume_thrust_fade — E8 Intelligence Research

Abstract

{ "name": "bear_flag_volume_thrust_fade", "source": "Thomas Bulkowski / Encyclopedia of Chart Patterns", "type": "entry_engine", "rule": "Enter short when price breaks below a 5-bar descending flag consolidation (highest high and lowest low both descending, slope<30deg) after a prior 3-bar impulsive drop (each bar lower low) with volume >1.5x prior 20-bar average on the breakdown bar, and the breakdown bar closes below the flag's lowest low with no lower wick greater than 15% of bar range.", "pseudocode": "LOOKBACK=5; FLAG_HIGH=MAX(HIGH[-5:-1]); FLAG_LOW=MIN(LOW[-5:-1]); FLAG_SLOPE=(CLOSE[-1]-CLOSE[-5])/5;\nPRIOR_DROP = ALL(CLOSE[i]1.5*SMA(VOLUME,20);\nWICK= (LOW==MIN(LOW,HIGH)?0:(LOW-CLOSE)/(HIGH-LOW)<0.15;\nIF PRIOR_DROP && FLAG_SLOPE>-0.002 && BREAK_BAR && VOL_THRUST && WICK<0.15 THEN SELL_SHORT;", "why_it_works": "High-volume breakdown from a compressed flag after impulsive selloff tr Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com