New edge proposed: acceleration_band_breakout_retest — E8 Intelligence Research

{ "name": "acceleration_band_breakout_retest", "source": "Eric Sharpe / Robert Miner (Acceleration Bands)", "type": "entry_engine", "rule": "Enter long when price closes above the upper Acceleration Band (20-period EMA of high + 2 * ATR) after having been below the lower band within the last 5 bars, and on the following bar price retests the band from above without closing below it; exact thresholds: lookback 20, multiplier 2.0, retest tolerance 0.25 * ATR, stop at mid-band (20-period EMA), target = 1.5 * ATR from entry.", "pseudocode": "upper = ema(high,20) + 2*atr(14)\nlower = ema(low,20) - 2*atr(14)\nwas_below = min(low[-5:-1]) < lower[-1]\nclose_above = close > upper\nif was_below and close_above:\n next_bar_high = high\n if min(high, upper) - upper < 0.25*atr and close > upper:\n entry = close\n stop = ema(close,20)\n target = entry + 1.5*atr(14)", "why_it_works": "Exploits volatility expansion and momentum continuation after a squeeze, with a precise retest entry Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com