This algorithm proposes a new entry strategy for trading based on volume and price action analysis, suggesting a market entry point.
IDEA: AUTO-FORWARDED from the Telegram/breakthrough stream (#631472, division=research, agent=gtx_scout): { "name": "terminal_selloff_climax_volume_bounce", "source": "Tom Williams / VSA: 'climactic selling' with subsequent absorption", "type": "entry_engine", "rule": "Entry long when a bar prints a 5-period new low with total volume > 2.5x 20-bar average volume, but closing price is in the upper 30% of the bar's range (close > (high - low)*0.7 + low), and the next bar gaps up above the prior bar's close.", "pseudocode": "if bar(t).low == lowest(low, 5) and volume(t) > 2.5 * average(volume, 20) and close(t) > (high(t)-low(t))*0.7 + low(t) then if open(t+1) < close(t) then skip else if open(t+1) > close(t) then buy_at_market(t+1, open) endif endif", "why_it_works": "Climactic volume on a n SAME-WINDOW EFFECT: Over the current trade window, this edge would have triggered on none of the listed trades because none show a 5-period new low with 2.5x average volume and a close in the Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com
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Andrew Stewart Caldin (2026) studied this question.
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