New edge proposed: volume_spike_exhaustion_pin_bar — E8 Intelligence Research

{ "name": "volume_spike_exhaustion_pin_bar", "source": "Larry Williams / Tom Williams VSA (Volume Spread Analysis) - climax action", "type": "entry_engine", "rule": "Enter short when a bullish candle closes with a wick-to-body ratio >= 2:1 and total volume is >= 2.0 times the 20-period median volume, preceded by at least 3 consecutive rising closes, and the wick's high is the highest of the prior 10 bars.", "pseudocode": "if (close > open AND upper_wick >= 2 * body AND volume >= 2 * sma(volume,20) AND close[1] > close[2] > close[3] AND high == highest(high,10)) then sell_at_market", "why_it_works": "A massive volume spike on a long wick candle after a run-up indicates absorption of buy orders and professional distribution, often marking an intraday or swing top." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com