New edge proposed: volume_climax_reversal — E8 Intelligence Research

{ "name": "volume_climax_reversal", "source": "Tom Williams' VSA (Volume Spread Analysis) / 'Master the Markets'", "type": "entry_engine", "rule": "Enter short on the first down close after a 3-bar climax where the highest-volume bar of the last 20 closes above its open with a range >1.5x average range of last 10, followed by 2 bars with decreasing volume each <80% of the climax bar volume, and the entry bar closes below both the climax bar low and its own open.", "pseudocode": "climax_bar = high volume (max of last 20) AND close > open AND range > 1.5*avg_range(10); bar1 = bar after climax, volume < 0.8*climax_volume; bar2 = bar after bar1, volume < 0.8*climax_volume; entry_bar = bar after bar2, close < low(climax_bar) AND close < open; enter short at entry_bar close; stop loss = high(climax_bar); target = low(entry_bar) - 1.5 * range(entry_bar)", "why_it_works": "Captures institutional distribution where a final burst of buying (climax) exhausts demand, confirmed by rapid volum Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com