New edge proposed: opening_range_breakout_retest — E8 Intelligence Research

Abstract

{ "name": "opening_range_breakout_retest", "source": "Linda Raschke / Market Wizards", "type": "entry_engine", "rule": "Enter short when price breaks below the opening range low (first 30 minutes of the session) by 0.25 ATR, then pulls back up to test that low level from below within the next 3 bars, and the retest bar has a higher close than open but fails to close above the breached level.", "pseudocode": "OR_low = low of first 6 five-minute bars of session\nif close < OR_low - 0.25*ATR(14):\n for next 3 bars:\n if high >= OR_low - 0.25*ATR and close > open and close < OR_low - 0.25*ATR:\n enter short at bar close\n stop above bar high + 0.1*ATR", "why_it_works": "Institutional traders often drive false breakdowns to trigger stops before buying, and the retest above the broken level reveals weak hands absorbing the liquidity grab." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com