New edge proposed: market_maker_reversal — E8 Intelligence Research
{ "name": "market_maker_reversal", "source": "Market Maker / Jim Dalton (Mind over Markets)", "type": "entry_engine", "rule": "Enter a short position when price opens above the prior day's high, trades at least one tick above that high, then returns below the prior day's high by more than 0.5 ATR of the prior day, and the current bar closes below its open with a range greater than 1.5x the average range of the prior 5 bars.", "pseudocode": "high_prev = high[1]; close_curr = close; open_curr = open; if high > high_prev and low < high_prev and (high_prev - low > 0.5 * atr(14)) and close_curr < open_curr and (high - low > 1.5 * average(range, 5)): entry = short_at_market; stop = high + 0.2 * atr(14); target1 = high_prev - 1.0 * atr(14); target2 = high_prev - 2.0 * atr(14)", "why_it_works": "Exploits the market maker trap where a break above a key level (prior day high) fails to sustain, trapping breakout buyers and triggering a rapid reversal as liquidity is absorbed." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com
Authors
- Andrew Stewart Caldin
Publication Details
- Journal
- Zenodo (CERN European Organization for Nuclear Research)
- Published
- 2026-08-14
- DOI
- https://doi.org/10.5281/zenodo.21929030
- Primary Topic
- Competitive and Knowledge Intelligence
- Type
- preprint