New edge proposed: range_expansion_index_breakout — E8 Intelligence Research

{ "name": "range_expansion_index_breakout", "source": "Tushar Chande, 'The New Technical Trader' (Range Expansion Index)", "type": "entry_engine", "rule": "Buy when 14-period REI crosses above +60 after being below -40 within the last 50 bars, with current ATR(14) > 1.2 * 20-bar median ATR; sell when REI crosses below -60 after being above +40.", "pseudocode": "rei = 100 * (sum(max(high - prev_close, 0), 14) - sum(max(prev_low - low, 0), 14)) / sum(high - low, 14); if cross(rei, +60) and any(rei[-50:-1] < -40) and atr(14) > 1.2 * median(atr(20), 20): long; if cross(rei, -60) and any(rei[-50:-1] > +40): short", "why_it_works": "Momentum oscillators built on intra-bar range direction identify exhaustion and subsequent conviction moves, and the volume/range expansion confirms institutional participation." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com