Examines trend entry strategies using the three bar play method, highlighting potential trading edges.
IDEA: AUTO-FORWARDED from the Telegram/breakthrough stream (#638778, division=research, agent=gtx_scout): { "name": "three_bar_play_bear_flag_volume_filtered", "source": "Linda Raschke / Al Brooks 2013 three-bar play pattern for trend continuation", "type": "entry_engine", "rule": "Enter short after three consecutive lower closes following a higher swing high, each bar closing below the prior bar's low, with the third bar's volume >= 1.5x the 20-period median volume and the entire setup below the 20-period SMA.", "pseudocode": "high0 = highest(high, 10)[1]; if close[-3] < close[-4] and low[-3] < low[-2] and close[-2] < close[-3] and low[-2] < low[-1] and close[-1] < close[-2] and close[-1] < close[-2], if close[-1] < sma(20)[-1], if volume[-1] >= 1.5 * median(volume, 20)[-1], then short_ SAME-WINDOW EFFECT: Over the current trade window, this edge would have triggered no short entries because none of the listed pairs exhibited three consecutive lower closes below the prior bar 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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