New edge proposed: afternoon_fade_reversal — E8 Intelligence Research

{ "name": "afternoon_fade_reversal", "source": "Linda Raschke / Market Taker, daily session fade pattern", "type": "entry_engine", "rule": "Enter short when price trades above the prior day's high by at least 0.5 ATR between 12:00 and 15:00 UTC and closes back below the prior day's high within 3 bars, with volume declining on the break above the prior day high.", "pseudocode": "if 12:00 <= bar_time <= 15:00:\n if high > prior_day_high + 0.5 * ATR14:\n if volume < volume_ma20 * 0.8:\n wait_for_close < prior_day_high within 3 bars\n if close < prior_day_high:\n entry = market short\n stop = prior_day_high + 1 * ATR14\n target1 = prior_day_low\n target2 = prior_day_high - 2 * ATR14", "why_it_works": "Afternoon sessions often see failed breakouts above prior day highs due to lack of follow-through volume, trapping late buyers and causing mean reversion to the prior day range." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com