New edge proposed: tick_rule_volume_smart_money_divergence — E8 Intelligence Research

{ "name": "tick_rule_volume_smart_money_divergence", "source": "Wyckoff / Volume Spread Analysis (VSA) literature, e.g., Tom Williams", "type": "filter_flag", "rule": "When price makes a new N-bar low (N=20) but tick-rule cumulative volume divergence (Stochastic RSI of cumulative tick-volume) is below 20 and price closes back above previous bar's high within 3 bars, flag bullish reversal candidate; inverse for highs.", "pseudocode": "for each bar i: if low[i] == min(low[i-20:i]) and close[i] > close[i-1] and StochRSI(tick_volume_cumsum, 14, 14) < 20: set bullish_div = true", "why_it_works": "Captures institutional absorption at extremes, where price fails to confirm volume-selling pressure, often preceding a reversal." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com