New edge proposed: bearish_harami_cross_filter — E8 Intelligence Research

{ "name": "bearish_harami_cross_filter", "source": "Steve Nison's Japanese Candlestick Charting Techniques", "type": "filter_flag", "rule": "Require a bearish harami cross pattern where a full-bodied red candle (close < open, body >= 60% of total range) is immediately preceded by a white candle with a body >= 0.5 ATR(14) and the second candle's open is <= prior close and its close is < prior open, and the pattern occurs above the 20 SMA.", "pseudocode": "prev = close[1] - open[1]; curr = close[0] - open[0]; if prev > 0 and abs(prev) >= 0.5 * atr(14) and (high[0] - low[0]) > 0 and abs(curr) / (high[0] - low[0]) >= 0.6 and curr < 0 and open[0] <= close[1] and close[0] < open[1] and close[0] > sma(20)[0]: return True else False", "why_it_works": "The bearish harami cross indicates a sudden loss of bullish momentum after a strong up move, often preceding reversals in trending markets when confirmed by a rising SMA20." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com