New edge proposed: alexander_squeeze_release — E8 Intelligence Research

Abstract

{ "name": "alexander_squeeze_release", "source": "Alexander Elder's 'Trading for a Living'\u2014the Squeeze (volatility contraction) followed by release", "type": "entry_engine", "rule": "Enter long if the current bar's range (high-low) is the smallest in the last 10 bars (a squeeze) and the next bar closes above the squeeze bar's high by at least 0.1 ATR, with a stop at the squeeze bar's low; enter short symmetrically on a close below the squeeze bar's low by 0.1 ATR.", "pseudocode": "squeeze_bar = bar where (high-low) == min(last 10 bars' ranges)\nif bar_index == squeeze_bar_index + 1:\n long_trigger = close > squeeze_bar.high + 0.1 * ATR(14)\n short_trigger = close < squeeze_bar.low - 0.1 * ATR(14)\n if long_trigger: signal = 'long' at close, stop = squeeze_bar.low\n else if short_trigger: signal = 'short' at close, stop = squeeze_bar.high\nreturn signal, stop", "why_it_works": "Markets alternate between consolidation and expansion; a decisive move from the tightes Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com