New edge proposed: prior_day_high_low_pullback_continuation — E8 Intelligence Research

{ "name": "prior_day_high_low_pullback_continuation", "source": "Toby Crabel / classic technical analysis (breakout pullback continuation)", "type": "entry_engine", "rule": "On the current day, if price crosses beyond the prior day's high (or low) by at least 0.5 ATR, then pulls back into the prior day's range within 3 bars, enter on the side of the break when price reclaims the prior day's extreme (close beyond that level) with the current bar's range >= 0.8 ATR.", "pseudocode": "priorHigh = priorBar.high; priorLow = priorBar.low; atr = ATR(14); breakOut = close > priorHigh + 0.5*atr or close < priorLow - 0.5*atr; if breakOut and within next 3 bars (low <= priorHigh for long or high >= priorLow for short) then wait for a bar to close beyond priorHigh (long) or below priorLow (short); if that bar's range >= 0.8*atr then enter at next bar open; stop = entry - 1.5*atr (long) or entry + 1.5*atr (short); target = entry + 2.0*atr (long) or entry - 2.0*atr (short).", "why_it_works": "I

Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com