New edge proposed: outside_bar_volume_climax_reversal — E8 Intelligence Research

Abstract

{ "name": "outside_bar_volume_climax_reversal", "source": "Al Brooks / Price Action trading", "type": "entry_engine", "rule": "After a 3-bar rally, if the next bar has a higher high and lower low (outside bar) and closes below its open with volume > 1.5x the 20-bar average volume, enter short on the close of that bar with a stop above the high and an initial target at the prior swing low.", "pseudocode": "if bar[-3].close > bar[-4].close and bar[-2].close > bar[-3].close and bar[-1].high > bar[-2].high and bar[-1].low < bar[-2].low and bar[-1].close < bar[-1].open and volume[-1] > 1.5 * average(volume, 20) then entry_short(close[-1], stop=high[-1], target=swing_low_prior)" } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com