New edge proposed: three_bar_inside_bar_burst_continuation — E8 Intelligence Research

{ "name": "three_bar_inside_bar_burst_continuation", "source": "Al Brooks - Price Action Trading", "type": "entry_engine", "rule": "Enter long when the current bar closes above the high of a two-bar inside-bar setup where the second bar is a narrow-range bar (<0.5 ATR) and the prior bar had a close above its open with bearish volume declining; stop below the inside-bar low, target 1.5x ATR.", "pseudocode": "if bar[2].close > bar[2].open and bar[1].high <= bar[2].high and bar[1].low >= bar[2].low and bar[1].range < 0.5*ATR(14) and bar[1].volume < bar[2].volume then if bar[0].close > bar[1].high then buy at bar[0].close; stop = bar[1].low; target = entry + 1.5*ATR(14); endif; endif", "why_it_works": "Combines a tight consolidation (inside bar) after a bullish impulse with declining volume, then a breakout with volume confirms continuation of the trend, aligning with classic price-action breakout logic." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com