New edge proposed: adar_secondary_test_with_volume_confirmation — E8 Intelligence Research

{ "name": "adar_secondary_test_with_volume_confirmation", "source": "Charles Dow / Dow Theory (via Robert Rhea's 'The Dow Theory')", "type": "entry_engine", "rule": "After a primary swing low (price lower low vs prior low) is formed, enter long on the first pullback to a higher low that holds above the prior low, confirmed by close above the 10-period SMA and bar volume > 1.2x the 20-period average volume.", "pseudocode": "if bar[i].low < min(low[i-1..i-5]) and bar[i].close > bar[i].open: # primary swing low\n swing_low = bar[i].low\n wait for pullback: search forward for bar[j] where low <= swing_low*1.005 and low >= swing_low (approx hold)\n then require close of bar[j] > SMA10(close) and volume > 1.2 * SMA20(volume)\n enter long at next bar open, stop at swing_low - 0.1*ATR, target at prior major high or 2R", "why_it_works": "Dow Theory's secondary test with rising volume confirms renewed institutional demand after a failed breakdown, reducing false reversals." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com