New edge proposed: opening_range_breakout_fade_with_volume_confirmation — E8 Intelligence Research

{ "name": "opening_range_breakout_fade_with_volume_confirmation", "source": "Kathy Lien / classic FX intraday mean reversion literature", "type": "entry_engine", "rule": "Enter fade (short at high, long at low) when first 30-minute opening range breaks, but the breakout bar closes back inside the range within 3 bars and has higher-than-average volume.", "pseudocode": [ "range_high = highest(high, 6) // 30min on 5min bars", "range_low = lowest(low, 6)", "if close > range_high or close < range_low:", " wait 3 bars", " if close back between range_high and range_low:", " if volume > SMA(volume, 20):", " if breakout was upward: short at close", " else: long at close", " stop = range_high + 1*ATR for short, range_low - 1*ATR for long", " target = original range midpoint" ], "why_it_works": "False breakouts on low liquidity opening ranges often trap late breakout traders, and volume spike indicates the fake-out is being fuelly absorbed." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com