New edge proposed: opening_range_breakout_fade_at_prior_day_high_low — E8 Intelligence Research

{ "name": "opening_range_breakout_fade_at_prior_day_high_low", "source": "Larry Williams / traditional short-term fade literature", "type": "entry_engine", "rule": "When price breaks the opening range (first 30 minutes) high or low and moves beyond the prior day's high or low by at least 0.5 ATR, enter counter-trend with a stop at 1.2 ATR beyond the prior extreme and target the opening range midpoint.", "pseudocode": "if bar_time == session_start: OR_high = max(high[0:30]), OR_low = min(low[0:30]) high > max(prior_day_high, OR_high) and (high - prior_day_high) >= 0.5*ATR: short_entry_price = close, stop = prior_day_high + 1.2*ATR, target = (OR_high+OR_low)/2 low < min(prior_day_low, OR_low) and (prior_day_low - low) >= 0.5*ATR: long_entry_price = close, stop = prior_day_low - 1.2*ATR, target = (OR_high+OR_low)/2", "why_it_works": "Exploits the well-documented tendency for sharp overextension beyond established prior-day extremes to induce short-term exhaustion and reversi Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com