New edge proposed: opening_range_breakout_fade — E8 Intelligence Research

{ "name": "opening_range_breakout_fade", "source": "Linda Raschke / Market Wizards (Larry Williams variation)", "type": "entry_engine", "rule": "If price breaks above the first 30-minute high by at least 0.5 ATR(14) but closes back inside the 30-minute range within 3 bars, enter short with stop above the breakout bar's high; mirror for long on downside break.", "pseudocode": "or_high = highest(high, 6) # first 30 min on 5min bars\nor_low = lowest(low, 6)\natr = atr(14)\nif close > or_high + 0.5*atr and low <= or_high and high[1] < or_high and close < or_high:\n enter_short(stop=high[0])\nelif close < or_low - 0.5*atr and high >= or_low and low[1] > or_low and close > or_low:\n enter_long(stop=low[0])", "why_it_works": "False breakouts of the opening range trap momentum chasers, providing a mean-reversion edge as initial liquidity is exhausted." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com