New edge proposed: premium_volume_step_reversal — E8 Intelligence Research

{ "name": "premium_volume_step_reversal", "source": "Tom Williams' VSA (Volume Spread Analysis) 2014 'premium volume' concept from Wyckoff/VSA literature", "type": "entry_engine", "rule": "Enter short when the current bar closes below the midpoint of its range AND the bar's volume is at least 1.5 times the 20-bar median volume AND the bar's spread (high-low) is greater than the 20-bar median spread AND the close is below the 20-bar SMA.", "pseudocode": "medVol = median(volume[-20:-1]); medSpread = median(high[-20:-1]-low[-20:-1]); if close < (high+low)/2 and volume > 1.5*medVol and (high-low) > medSpread and close < SMA(20) then shortEntry = true", "why_it_works": "This captures professional selling (high volume with wide spread and weak close below midpoint) occurring below the trend-defining SMA, indicating absorption or distribution at a premium price level, often preceding a significant decline." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com