New edge proposed: opening_range_breakout_failure_reversal — E8 Intelligence Research

{ "name": "opening_range_breakout_failure_reversal", "source": "Linda Raschke - opening range breakout failure pattern", "type": "entry_engine", "rule": "Enter short when price breaks above the first 30-minute high of the session by at least 0.3 ATR but then closes back below that same high within 3 bars, confirmed by a bearish engulfing or long upper wick on the breakout bar.", "pseudocode": "if current_timestamp within first_30min_session: session_high = high of that period close > session_high + 0.3 * ATR(14) on any later bar: wait for next 3 bars OR less if any bar closes < session_high: if bar is bearish_engulfing OR upper_wick > 0.6 * bar_range: entry_signal = true at close of that bar", "why_it_works": "This exploits false breakouts where aggressive momentum fades as liquidity grabs fail, trapping late buyers before mean reversion." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com