New edge proposed: tick_rule_volume_price_divergence — E8 Intelligence Research

{ "name": "tick_rule_volume_price_divergence", "source": "Tom Williams / VSA literature, and Wyckoff's effort-vs-result principle", "type": "filter_flag", "rule": "Flag any bar where price makes a higher high or lower low versus the prior bar but the bar's volume is below its 20-bar average and the bar closes in the opposite half of its range, as a sign of weak effort; do not enter counter to this signal.", "pseudocode": "if (high > prev_high OR low < prev_low) AND volume < SMA(volume, 20) AND close < (high+low)/2 then flag_weak_effort = true", "why_it_works": "Weak effort with failed follow-through indicates imminent reversal or absorption, not genuine breakout momentum." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com