New edge proposed: premium_discount_imbalance_sweep — E8 Intelligence Research

{ "name": "premium_discount_imbalance_sweep", "source": "ICT (Inner Circle Trader) / Smart Money Concepts literature", "type": "entry_engine", "rule": "Enter long when price trades below the prior day's low (premium/discount imbalance) by at least 0.5 * ATR(14) and then closes back above the prior day's low within 3 bars, with the current bar's range less than 1.5 * ATR(14) to avoid high volatility false breaks.", "pseudocode": "priorLow = low[1]; if (low <= priorLow - 0.5*ATR14 and close > priorLow and barsSinceSweep <= 2 and range < 1.5*ATR14) then buy at close; stop = lowest low of last 5 bars; target = priorLow + 1.5 * (priorHigh - priorLow);", "why_it_works": "Institutional stop hunts often sweep below obvious prior-day lows into an illiquid discount zone before reversing, providing a high-probability entry with a tight stop." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com