New edge proposed: volume_spread_surge — E8 Intelligence Research

Abstract

{ "name": "volume_spread_surge", "source": "Tom Williams / VSA methodology", "type": "entry_engine", "rule": "Enter long when current bar closes in upper 25% of its range, volume is at least 2.5x the 20-bar average volume, and spread (high-low) expands to at least 1.5x the average spread of the prior 5 bars, with no prior position in the last 3 bars.", "pseudocode": "if bar.volume >= 2.5 * avg(volume[20]) and bar.close > bar.low + 0.75*(bar.high-bar.low) and (bar.high-bar.low) >= 1.5 * avg(high-low[5]) and not (any position in last 3 bars): go_long", "why_it_works": "This captures institutional absorption and aggressive buying into strength, typical of a genuine initial thrust out of a consolidation zone." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com