New edge proposed: outside_bar_breakout_with_close_above_midpoint — E8 Intelligence Research

{ "name": "outside_bar_breakout_with_close_above_midpoint", "source": "Toby Crabel, Day Trading with Short Term Price Patterns and Opening Range Breakout", "type": "entry_engine", "rule": "Enter long when the current bar is an outside bar (high above prior high and low below prior low), it closes above the midpoint of its own range, and the bar's range exceeds 1.5 times the average range of the prior 20 bars; exit at prior bar high or after 5 bars.", "pseudocode": "avg_range = SMA(high - low, 20) high > prev_high and low < prev_low: if close > (high + low) / 2 and (high - low) > 1.5 * avg_range: entry = next_bar_open stop = min(low, prev_low) target = prev_high max_hold = 5 bars", "why_it_works": "Outside bars with unusually wide range indicate strong directional conviction and immediate volatility expansion, often leading to continuation in the closing direction." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com