New edge proposed: volume_weighted_average_price_reclaim_after_engulfing — E8 Intelligence Research

{ "name": "volume_weighted_average_price_reclaim_after_engulfing", "source": "VWAP literature / institutional order-flow concepts (e.g., John Kolade, Steven Drobny)", "type": "entry_engine", "rule": "On any bar, if the previous 5 bars printed a bearish engulfing candle (close < open and close < previous close, body engulfs previous body) while price has been below the rolling 20-bar VWAP for at least 8 consecutive bars, and the current bar's close is above the 20-bar VWAP, then enter long at the current bar's close with a stop below the engulfing bar's low and a target at 1.5x ATR(14) above entry.", "pseudocode": "VWAP20 = sma(typical_price,20)\nbelow = all(close[i] < VWAP20[i] for i in range(current-8, current))\nbearish_engulf = close[-2] < open[-2] and close[-2] < close[-3] and body[-2] > body[-3] and open[-2] <= open[-3] and close[-2] <= close[-3]\nif bearish_engulf and below and close > VWAP20:\n entry = close\n stop = low[-2]\n target = entry + 1.5 * ATR(14)\n si Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com