New edge proposed: prior_session_high_low_breakout_reversal — E8 Intelligence Research

{ "name": "prior_session_high_low_breakout_reversal", "source": "Toby Crabel - Day Trading with Short Term Price Patterns and Opening Range Breakout", "type": "entry_engine", "rule": "If price breaks prior session's high or low by 0.5 ATR (14-period) within the first 30 minutes of the new session, enter counter-trend at the extreme with a stop at 0.5 ATR beyond the extreme, targeting the prior day's close.", "pseudocode": "if time is within first 30 min of session:\n if low < prev_high - 0.5*ATR14 and close > prev_high:\n enter short at close, stop = prev_high + 0.5*ATR14, target = prev_close\n if high > prev_low + 0.5*ATR14 and close < prev_low:\n enter long at close, stop = prev_low - 0.5*ATR14, target = prev_close", "why_it_works": "False breakouts of prior day's extremes are common at the open due to stops and inexperienced traders, leading to reversion toward the prior close." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com