New edge proposed: stochastic_klinger_divergence — E8 Intelligence Research

{ "name": "stochastic_klinger_divergence", "source": "Klinger Volume Oscillator by Stephen Klinger, divergences taught by Linda Raschke and Martin Pring", "type": "entry_engine", "rule": "Go long when 34-period Klinger Volume Oscillator (KVO) forms a bullish divergence with price (lower price low but higher KVO low), KVO crosses above its 13-period signal line, and Stochastic %K (14,3,3) rises from below 20; go short on the bearish mirror.", "pseudocode": "kv = (ema21(volume * 2*(close-open)) if close>prev_close else ema21(volume * (close-open))); kv_line = ema34(kv); signal = ema13(kv_line); kvo = kv_line - signal; stochK = sma3((close - low14)/(high14 - low14))*100; if price_low_n < price_low_n-2 and kvo_low_n > kvo_low_n-2 and kvo > signal and stochK < 20 then buy; if price_high_n > price_high_n-2 and kvo_high_n < kvo_high_n-2 and kvo < signal and stochK > 80 then sell", "why_it_works": "Combines volume-force turning points (Klinger) with momentum overshoot (Stochastic) to cat Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com