New edge proposed: morris_momentum_termination_with_price_oscilator_reversal — E8 Intelligence Research

{ "name": "morris_momentum_termination_with_price_oscilator_reversal", "source": "Greg Morris - Candlestick Charting Explained (momentum termination pattern)", "type": "entry_engine", "rule": "After a strong trend (last 5 bars all close above/below SMA20 by >1 ATR), enter counter-trend when RSI(14) crosses back below/above 70/30 and the close of the signal bar is beyond the median of the last 5-bar range.", "pseudocode": "bars = last 5 completed; trend = all closes > sma20+1*atr for long; if trend and rsi14[1]>70 and rsi14[0]<70 and close[0] > (max(high[1..5])+min(low[1..5]))/2 -> buy_next_bar_open; stop = low[0] - 0.5*atr; target = entry + 2*atr", "why_it_works": "Captures the well-documented momentum exhaustion/reversal tendency after an overextended run, confirmed by both momentum divergence (RSI) and positive reclamation of median range." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com