New edge proposed: opening_range_breakout_with_prior_day_high_low_break_filter — E8 Intelligence Research

{ "name": "opening_range_breakout_with_prior_day_high_low_break_filter", "source": "Derived from Larry Williams' opening range breakout and prior day range concepts", "type": "filter_flag", "rule": "Only take a breakout of the first 30-minute opening range if the breakout direction also breaks beyond the prior day's high or low (i.e., the current price is making a new 1-day extreme on the side of the breakout).", "pseudocode": "if bar.time == first_30min_complete: \n OR_high = max(high[0:30min]); OR_low = min(low[0:30min])\nFor each subsequent bar:\n if close > OR_high and close > prior_day_high:\n flag = 1 (valid long setup)\n elif close < OR_low and close < prior_day_low:\n flag = 1 (valid short setup)\n else:\n flag = 0\nUse flag to allow entry only when true.", "why_it_works": "Requiring the breakout to exceed the prior day's extreme filters out low-conviction inside moves and aligns with the momentum effect that new 1-day extremes often lead to continuation." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com