New edge proposed: first_hour_range_breakout_with_directional_volume — E8 Intelligence Research

{ "name": "first_hour_range_breakout_with_directional_volume", "source": "Larry Williams / classic opening range breakout literature", "type": "entry_engine", "rule": "Enter long if price breaks above the high of the first 60-minute bar after session open (or short below low) AND the breakout bar's volume is at least 1.5x the average volume of the previous 5 bars of the same timeframe, with a stop at the opposite side of the first-hour range and target at 2x the range length.", "pseudocode": "if bar_time == session_open: first_high = high; first_low = low; record; elif bar_index == session_open + 1 (i.e., after first hour): if close > first_high and volume > 1.5 * avg(volume[-5:-1]): go_long at close; stop = first_low; target = entry + 2*(first_high - first_low); elif close < first_low and volume > 1.5 * avg(volume[-5:-1]): go_short at close; stop = first_high; target = entry - 2*(first_high - first_low);", "why_it_works": "The first hour establishes a reference range for the day Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com