New edge proposed: accumulation_distribution_squeeze — E8 Intelligence Research

{ "name": "accumulation_distribution_squeeze", "source": "Larry Williams / Tom Williams VSA literature", "type": "filter_flag", "rule": "Enter only if the 14-period Accumulation/Distribution line is diverging bullishly from price (lower price low with higher ADL low) AND the 10-period ATR is below its 20-period simple moving average for at least 3 consecutive bars, filtering out low-momentum range days.", "pseudocode": "adl = cum(((close-low)-(high-close))/(high-low)*volume, upto 14 bars) lowest(close,5) < lowest(close,5)[1] and lowest(adl,5) > lowest(adl,5)[1] then atr10 = sma(atr(14),10) atr20 = sma(atr(14),20) if atr10 < atr20 for last 3 bars then signal = 1 (allow entry) endif", "why_it_works": "Divergence reveals hidden accumulation despite weak price action, while the ATR squeeze confirms the market is coiling for an imminent directional expansion, improving the win rate of follow-through trades." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com