New edge proposed: pivot_point_reversion_at_daily_pivot — E8 Intelligence Research

{ "name": "pivot_point_reversion_at_daily_pivot", "source": "Classic floor trading pivot points (J. Welles Wilder / traditional pit traders)", "type": "filter_flag", "rule": "For an entry signal to be valid, the current bar's low must have traded below the daily pivot (P = (H+L+C)/3 of prior day) and the bar must close back above the pivot within 2 bars, with prior 5-bar average volume below the 20-bar average volume.", "pseudocode": "P = (prev_H + prev_L + prev_C)/3\ bar.low < P and close > P (or within 2 bars close > P)\ avg(volume,5) < avg(volume,20)\ flag = 1 else flag = 0", "why_it_works": "Pivot points act as self-fulfilling support/resistance magnets; reversion above a tested pivot with shrinking volume indicates exhaustion of the bearish push and a return to the mean." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com