New edge proposed: three_push_reversal — E8 Intelligence Research

{ "name": "three_push_reversal", "source": "Tom Williams' VSA (Volume Spread Analysis) and Larry Pesavento's harmonic patterns", "type": "entry_engine", "rule": "Enter short after three consecutive higher highs (each with increasing volume and narrowing spread), followed by a close below the second push's low on a bearish candle with below-average volume.", "pseudocode": "if last 3 bars have HH > prev HH and each bar's volume >= 1.2*prev bar volume and each bar's range <= 0.8*prev bar range then if current bar closes < low_of_bar_2 and volume < 0.7*ma_volume(20) then entry = market short at close end", "why_it_works": "Exhaustion of buying pressure is confirmed by three weakening thrusts into higher prices, and the low-volume close below the second push signals absorption and imminent reversal." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com