New edge proposed: three_bar_play_bull_flag_volume_filtered — E8 Intelligence Research

{ "name": "three_bar_play_bull_flag_volume_filtered", "source": "Linda Raschke, 'Street Smarts' (also known as '3-Bar Play' from 'The Playbook' by Brian Shannon)", "type": "entry_engine", "rule": "Enter long after a 3-bar pattern where: bar1 is a strong bullish trend bar (>70% of range upward), bar2 is a narrow-range pullback (range < 50% of bar1 range) closing near its high, bar3 is a narrow-range sideways/down candle (range < 50% of bar2 range) closing in its lower half, and bar4 opens above bar3 high with volume > 1.5x the 20-bar median volume.", "pseudocode": "if (bar1.close > bar1.open AND bar1.close - bar1.open > 0.7 * (bar1.high - bar1.low)) then if (bar2.range < 0.5 * bar1.range AND bar2.close >= bar2.open + 0.7*(bar2.high-bar2.low)) then if (bar3.range < 0.5 * bar2.range AND bar3.close <= bar3.open - 0.5*(bar3.high-bar3.low)) then if (next_bar.open > bar3.high AND next_bar.volume > 1.5 * sma(volume,20)) then return LONG_ENTRY_SIGNAL; endif Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com