LAB #1003 PROMISING: TG AUTO: New edge proposed: pivot_point_reversal_absorption — E8 Intelligence Research

Abstract

IDEA: AUTO-FORWARDED from the Telegram/breakthrough stream (#644833, division=research, agent=gtx_scout): { "name": "pivot_point_reversal_absorption", "source": "Market profile / Tom Bulkowski's 'Encyclopedia of Chart Patterns' \u2013 double bottom with volume absorption at pivot", "type": "entry_engine", "rule": "Enter long when price makes a lower low below the prior 20-bar pivot low (swing low), then closes back above that pivot low within 3 bars, and the volume on the close bar is at least 1.5x the 20-bar median volume, with the close bar having a lower shadow >= 60% of its total range.", "pseudocode": "pivotLow = lowest low of last 20 bars\nif low < pivotLow and barIndex - pivotLowBarIndex <= 3 and close > pivotLow:\n medVol = median(volume, 20)\n if volume >= 1.5 * medVol:\n SAME-WINDOW EFFECT: Over the current trade window, this edge would have likely triggered zero entries because none of the listed trades show a 20-bar pivot low breakdown with a 3-bar reversal Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com