New edge proposed: amu_spread_of_meeting_heights — E8 Intelligence Research

{ "name": "amu_spread_of_meeting_heights", "source": "Larry Williams short-term trading reversal concept (failed breakout at prior extreme)", "type": "entry_engine", "rule": "Enter short when price trades above the higher of (prior day high, 10-bar high) by at least 0.05*ATR(14) but closes back below that level within 3 bars, with RSI(14) > 70 at the time of the high; stop at bar high + 0.1*ATR, target prior day close or 2*ATR risk.", "pseudocode": "H = max(high[1], highest(high,10)[2]); if high[0] > H + 0.05*ATR14 and close[0] < H; if RSI14[0] > 70; entry = short at close[0]; stop = max(high[0], H) + 0.1*ATR14; target = min(prev_close, entry - 2*ATR14);", "why_it_works": "Failed breakouts at known resistance after an overbought condition trap late longs and fuel mean reversion." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com