New edge proposed: accumulation_distribution_reversal_at_volume_climax — E8 Intelligence Research

{ "name": "accumulation_distribution_reversal_at_volume_climax", "source": "Classic technical analysis literature (e.g., Larry Williams, Tom DeMark) on volume climax and accumulation/distribution divergence", "type": "entry_engine", "rule": "Enter short when the 14-period Accumulation/Distribution Line makes a lower high while price makes a higher high, AND the current bar's volume is at least 2.5x the 50-bar average volume (climax), AND the current bar closes below the prior bar's low.", "pseudocode": "if bar_index >= 64:\n ad = ((close-low) - (high-close)) / (high-low) * volume\n ad_line = cumulative ad over last 14 bars (using standard formula)\n price_high_14 = highest high of last 14 bars (excluding current)\n previous_high_signal = (price_high_14 > previous 14-bar high) and (ad_line < previous 14-bar ad_line)\n if previous_high_signal:\n vol_spike = volume >= 2.5 * sma(volume, 50)\n close_below_prev_low = close < low[1]\n if vol_spike and close_below_prev_low:\

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