New edge proposed: accumulation_distribution_divergence — E8 Intelligence Research

{ "name": "accumulation_distribution_divergence", "source": "Larry Williams / volume spread analysis (VSA) literature", "type": "entry_engine", "rule": "Enter long when price makes a 5-bar lower low while the Accumulation/Distribution Line (ADL) makes a higher low, confirmed by the ADL being above its 14-period EMA; enter short when price makes a 5-bar higher high while the ADL makes a lower high, confirmed by the ADL being below its 14-period EMA.", "pseudocode": "high = high(1 to 5); low = low(1 to 5); adl = cum( ((close-low) - (high-close)) / (high-low) * volume ); if low[4]==min(low) and adl[4]>adl[0] and adl[4]>ema(adl,14)[4] then long else if high[4]==max(high) and adl[4] Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com