New edge proposed: bullish_engulfing_at_support_with_volume_surge — E8 Intelligence Research

{ "name": "bullish_engulfing_at_support_with_volume_surge", "source": "Steve Nison's Japanese Candlestick Charting Techniques", "type": "entry_engine", "rule": "Enter long on a bullish engulfing pattern that occurs within 0.5 ATR above the prior 20-bar low, and whose second bar volume is at least 1.5 times the 20-bar average volume, with a stop below the engulfing bar's low and a target at 2x the entry risk.", "pseudocode": "if bar[1].close < bar[1].open and bar[0].close > bar[0].open and bar[0].open < bar[1].close and bar[0].close > bar[1].open and bar[0].low >= (lowest(low,20) - 0.5*ATR) and bar[0].volume >= 1.5 * average(volume,20) then buy at bar[0].close, stop at bar[0].low, target at close + 2*(close-stop)", "why_it_works": "A bullish engulfing pattern at a defined support level shows aggressive buyers overwhelmed sellers, and the volume surge confirms institutional participation, often leading to a swing reversal." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com