New edge proposed: prior_day_bias_continuation_with_momentum_filter — E8 Intelligence Research

{ "name": "prior_day_bias_continuation_with_momentum_filter", "source": "Larry Williams' 'Long-Term Secrets to Short-Term Trading' - Oops/Bias trading concept", "type": "filter_flag", "rule": "Only take long entries when today's open is above the prior day's close AND the prior day closed in the top 30% of its daily range; only take short entries when today's open is below the prior day's close AND the prior day closed in the bottom 30% of its daily range.", "pseudocode": "if bar.tf == daily: prior_close = close[1]; prior_range = high[1] - low[1]; prior_pos = (close[1] - low[1]) / prior_range; bull_bias = open > prior_close and prior_pos >= 0.70; bear_bias = open < prior_close and prior_pos <= 0.30; emit(bull_bias, bear_bias)", "why_it_works": "Captures institutional continuation when a prior day's strong close direction is confirmed by opening in the same direction, aligning with the 'window of opportunity' for trend-following." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com