New edge proposed: overnight_session_extreme_reversal_at_london_open — E8 Intelligence Research

{ "name": "overnight_session_extreme_reversal_at_london_open", "source": "Kathy Lien / FX market microstructure; well-documented 'overnight drift + London open reversal' effect", "type": "entry_engine", "rule": "Enter short (long) at London open (07:00 UTC) if the high (low) of the Asian session (00:00-07:00 UTC) exceeded the previous day's high (low) by at least 0.5*ATR(14) but price has closed back inside that previous day's range by 06:00 UTC, with stop at Asian extreme and target 1.0*ATR(14) from entry.", "pseudocode": "if time == 07:00 UTC: asia_high = max(high[00:00-07:00]) asia_low = min(low[00:00-07:00]) prev_high = high[prev_day] prev_low = low[prev_day] if asia_high > prev_high + 0.5*ATR14 and close[06:00] < prev_high: short_entry = open[07:00] stop = asia_high target = entry - 1.0*ATR14 elif asia_low < prev_low - 0.5*ATR14 and close[06:00] > prev_low: long_entry = open[07:00] stop = asia_low Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com