New edge proposed: choch_volume_sweep — E8 Intelligence Research

Abstract

{ "name": "choch_volume_sweep", "source": "ICT / Smart Money Concepts (Change of Character with volume confirmation)", "type": "entry_engine", "rule": "Enter short when price breaks below a prior swing low with >1.5x average volume (20-period) and closes below that level, after a clear uptrend defined by higher highs and higher lows over the last 10 bars.", "pseudocode": "if trend_up = (HH and HL over last 10 bars) then:\n if low < prior_swing_low (lookback 20) and volume > 1.5 * avg_volume(20) and close < prior_swing_low then:\n enter_short_at_market\n stop_loss = prior_swing_high (lookback 10)\n take_profit = 1.5 * ATR(14) from entry", "why_it_works": "Breaking below a structural swing low with heavy volume confirms a shift from accumulation to distribution, trapping late buyers and triggering stop-loss cascades." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com