New edge proposed: buying_climax_after_three_advancing_bars — E8 Intelligence Research

{ "name": "buying_climax_after_three_advancing_bars", "source": "Tom Williams / VSA (Volume Spread Analysis) 2014 climax buying after a strong up-move", "type": "entry_engine", "rule": "On a 1H or 4H bar, if the bar closes near its low (lower wick < 10% of range), has a large spread (range > 1.5 * 20-bar ATR), and closes above the prior two bars' highs, then go short on the next bar open with a stop above the climax bar's high and target at the 50% retracement of the last 5-bar move.", "pseudocode": [ "for each bar i (excluding first 20):", " if bar[i].close < bar[i].low + 0.1 * (bar[i].high - bar[i].low) and", " (bar[i].high - bar[i].low) > 1.5 * atr20[i-1] and", " bar[i].close > max(bar[i-1].high, bar[i-2].high) then:", " entry = bar[i+1].open", " stop = bar[i].high", " target = entry - 0.5 * (high[last 5 bars] - low[last 5 bars])", " if bar[i+1].open < bar[i].high then take short", " record trade with fixed fractional risk" ], "why_ Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com