New edge proposed: inside_bar_breakout_with_volume_expansion — E8 Intelligence Research

{ "name": "inside_bar_breakout_with_volume_expansion", "source": "Toby Crabel - Day Trading with Short Term Price Patterns and Opening Range Breakout", "type": "entry_engine", "rule": "Enter long on a close above the high of the prior bar if the prior bar is an inside bar (high <= prior bar's high and low >= prior bar's low) and current bar volume is at least 1.5x the 20-bar average volume; enter short on a close below the prior bar's low under the same volume condition.", "pseudocode": "if bar[1].high <= bar[2].high and bar[1].low >= bar[2].low: if close > bar[1].high and volume > 1.5 * avg(volume, 20): buy next bar open; if close < bar[1].low and volume > 1.5 * avg(volume, 20): sell next bar open; exit on opposite signal or 2x ATR stop", "why_it_works": "Inside bars indicate consolidation; a breakout with above-average volume confirms institutional participation and reduces false breakouts." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com