New edge proposed: steidlmayer_initiative_buying_after_value_area_reject — E8 Intelligence Research

{ "name": "steidlmayer_initiative_buying_after_value_area_reject", "source": "Market Profile / Steidlmayer (CBA, 1985)", "type": "entry_engine", "rule": "After price has traded below the previous day's value area low (VAL) for at least 2 consecutive 30-min bars, enter long on the first subsequent 30-min bar that closes back above VAL, with a stop at the bar's low, and only if that bar's volume is above its 20-bar average.", "pseudocode": "prev_daily_VAL = percentile(1e5, low, 70) of previous day bars\n if low[0] < prev_VAL and low[1] < prev_VAL and close[2] > prev_VAL:\n if volume[2] > mean(volume[1:21]):\n entry = close[2]\n stop = low[2]", "why_it_works": "Initiative buying by professional traders reclaiming the value area invalidates the breakdown, and volume confirms participation." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com