New edge proposed: thomas_wade_demarker_reversal — E8 Intelligence Research

{ "name": "thomas_wade_demarker_reversal", "source": "Thomas Wade / DeMarker indicator (TD) based on DeMark's sequential principles, popularized in technical analysis literature", "type": "entry_engine", "rule": "Enter long when DeMarker (DeM) 14-period value drops below 0.20 and the next bar closes above the high of the bar that triggered the oversold reading; enter short when DeM 14 rises above 0.80 and the next bar closes below the low of the overbought trigger bar, with both confirmed by ATR >= 1.5 * average ATR(20) to ensure volatility participation.", "pseudocode": "DEM = DMark(14); avgATR = SMA(ATR(14),20); if DEM[-1] < 0.20 and close[-1] > high[-2] and ATR[-1] >= 1.5*avgATR[-1]: long_entry; if DEM[-1] > 0.80 and close[-1] < low[-2] and ATR[-1] >= 1.5*avgATR[-1]: short_entry;", "why_it_works": "The DeMarker oscillator identifies exhaustion of directional momentum at extreme price levels, and requiring a volatility filter prevents false signals in low-liquidity chop regions Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com