New edge proposed: three_drive_reversal — E8 Intelligence Research

{ "name": "three_drive_reversal", "source": "The_3-Drive_Pattern by H.M. Gartley, later systematized by Larry Pesavento", "type": "entry_engine", "rule": "Enter reversal on third drive when price makes three equal-length legs (each 0.618-1.000 Fibonacci retracement of prior leg) and RSI14 divergence occurs at the third extreme", "pseudocode": "identify_peaks_troughs(swing_high_low, min_swing_pips=10)\nfor i from 2 to n-1:\n leg1 = abs(swing[i-1] - swing[i-2])\n leg2 = abs(swing[i] - swing[i-1])\n retrace = abs(swing[i] - swing[i-2]) / leg1\n if 0.618 <= retrace <= 1.0 and 0.9 <= leg2/leg1 <= 1.1:\n if RSI14(close[i]) diverges from price extreme at swing[i]:\n enter_reverse(swing[i])", "why_it_works": "Three equal legs exhaust trending energy via Elliott wave mechanics, while RSI divergence confirms momentum depletion at the pattern completion point" } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com