New edge proposed: turtle_soup_50_percent_retracement_entry — E8 Intelligence Research

Abstract

{ "name": "turtle_soup_50_percent_retracement_entry", "source": "Larry Williams / turtles (Richard Dennis) \u2014 'soup' of failed 20-day breakout, retracement entry", "type": "entry_engine", "rule": "Enter long when price breaks the 20-day high, closes back below that high within 5 bars, then retraces 50% of the 20-day range (low to high) and prints a bullish 1-bar reversal; enter short symmetrically on 20-day low break and close back above, then retrace 50% and bearish reversal.", "pseudocode": "if bar.close > highest(high, 20)[1] and then any of next 5 bars close < that high:\n set zone = (highest(high,20)[1] + lowest(low,20)[1])/2\n if bar.low <= zone and bar.close > bar.open:\n buy next bar open\nif bar.close < lowest(low, 20)[1] and then any of next 5 bars close > that low:\n set zone = (highest(high,20)[1] + lowest(low,20)[1])/2\n if bar.high >= zone and bar.close < bar.open:\n sell next bar open", "why_it_works": "Captures failed breakouts (trap) and mean-revers Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com