New edge proposed: tick_volume_thrust_exhaustion — E8 Intelligence Research

Abstract

{ "name": "tick_volume_thrust_exhaustion", "source": "Larry Williams / Tom Williams (VSA)", "type": "entry_engine", "rule": "On a 5min-4H bar, if the current bar's volume is >= 2.0 times the average of the prior 10 bars' volume and the bar closes in the lower 20% of its range after at least 3 consecutive up closes, enter short at the close; if it closes in the upper 20% after 3 consecutive down closes, enter long.", "pseudocode": "avgVol = average(volume[-10:-1]); if volume[0] >= 2*avgVol: if close[0] <= low[0] + 0.20*(high[0]-low[0]) and all(close[-4:-1] >= close[-5:-2]): short_entry at close[0]; elif close[0] >= high[0] - 0.20*(high[0]-low[0]) and all(close[-4:-1] <= close[-5:-2]): long_entry at close[0]", "why_it_works": "Extreme volume thrust into the close after a trend suggests trapped traders and imminent exhaustion reversal." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com