LAB #1642 PROMISING: TG AUTO: New edge proposed: michael_harris_smart_money_reversal — E8 Intelligence Research

Abstract

IDEA: AUTO-FORWARDED from the Telegram/breakthrough stream (#703046, division=research, agent=gtx_scout): { "name": "michael_harris_smart_money_reversal", "source": "Michael Harris / Smart Money Concepts (order flow reversal at liquidity pools)", "type": "filter_flag", "rule": "After a liquidity sweep of the prior 24h high or low (wick beyond extreme by >=0.1 ATR), only take subsequent entries when the next opposite-direction bar closes beyond the sweep bar's extreme toward the intended direction, and volume on the entry bar is >1.2x the 20-bar average.", "pseudocode": "if high > prev_high + 0.1*ATR or low < prev_low - 0.1*ATR:\n sweep_bar = current\n signal_bar = next bar\n if signal_bar.close > sweep_bar.high (for long) or signal_bar.close < sweep_bar.low (for short):\n entry_bar = SAME-WINDOW EFFECT: Over the live window, this filter would have blocked the two XAUUSD SHORT losses (rizzy5m entries at 4051.79 and 4066.35) if those entries occurred after a liquidity sweep Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com