New edge proposed: second_hour_rule_tom_dec_markets — E8 Intelligence Research

{ "name": "second_hour_rule_tom_dec_markets", "source": "Tom DeMark's 'Second Hour Rule' (DeMark on Day Trading Options, 1999)", "type": "entry_engine", "rule": "Enter long if the first 60-minute bar of the trading day closes below the previous day's close, and the 60-minute bar from minute 60 to 120 closes above the previous day's close, with entry on the close of that second hour bar; enter short for the mirror (first hour close above prior close, second hour close below prior close).", "pseudocode": "prev_close = close of last completed daily bar\nfirst_hour_close = close of bar with timestamp >= session_open and < session_open+1h\nsecond_hour_close = close of bar with timestamp >= session_open+1h and < session_open+2h\nif first_hour_close < prev_close and second_hour_close > prev_close:\n entry = second_hour_close, direction = long\nelif first_hour_close > prev_close and second_hour_close < prev_close:\n entry = second_hour_close, direction = short\nelse: no trade", "wh Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com