New edge proposed: double_top_neckline_break_with_failed_retest — E8 Intelligence Research

{ "name": "double_top_neckline_break_with_failed_retest", "source": "Edwards & Magee, Technical Analysis of Stock Trends", "type": "entry_engine", "rule": "After a completed double-top pattern with neckline drawn through the intervening trough, enter short when price closes below the neckline by at least 0.25 ATR and subsequently fails to reclaim the neckline within 3 bars, with a stop above the second peak and target at the measured move (pattern height projected from neckline).", "pseudocode": "for each bar i after 20-bar minimum range:\n find two distinct peaks within 15 bars, peaks within 0.5 ATR, trough between >= 1 ATR below higher peak\n if both peaks and trough detected and price closed below neckline - 0.25 ATR:\n wait up to 3 bars for close back above neckline -> if none, enter short at next open\n stop = max(second peak high, entry + 1.5 ATR)\n target = neckline_price - (pattern_height) // measured move\n exit if close above neckline or target hit", "why Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com