New edge proposed: prior_day_high_low_no_touch_reentry — E8 Intelligence Research

{ "name": "prior_day_high_low_no_touch_reentry", "source": "Al Brooks / price action trading: failed breakout at prior day high/low and reentry in same direction", "type": "entry_engine", "rule": "Enter short if price trades above prior day high by at least 0.1*ATR (of current day), then closes back below prior day high after the first touch, and the current day's open was below prior day high; enter long symmetrically for prior day low.", "pseudocode": "if bar.high > prior_high and bar.close < prior_high and day_open < prior_high: enter_short_on_close\nif bar.low < prior_low and bar.close > prior_low and day_open > prior_low: enter_long_on_close", "why_it_works": "The breakout beyond prior extreme traps breakout traders, and the close back inside reveals a false breakout, leading to reversion toward the prior range." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com