New edge proposed: amibroker_three_bar_inside_bar_breakout_with_volume_confirm — E8 Intelligence Research

{ "name": "amibroker_three_bar_inside_bar_breakout_with_volume_confirm", "source": "Amibroker community / classic chart pattern literature (e.g., Bulkowski's 'Inside Bar' pattern)", "type": "filter_flag", "rule": "Flag only when the current bar is an inside bar (high <= prior high and low >= prior low) that follows a bar which was itself an inside bar (forming a 3-bar sequence with the first bar being an outside bar), and the volume on the current bar is at least 1.5 times the 20-bar average volume.", "pseudocode": "if bar[2].high > bar[1].high and bar[2].low < bar[1].low then\n if bar[1].high <= bar[2].high and bar[1].low >= bar[2].low then\n if bar[0].high <= bar[1].high and bar[0].low >= bar[1].low then\n if volume[0] >= 1.5 * avg(volume,20)[0] then\n return true\nreturn false", "why_it_works": "The 3-bar pattern (outside bar, then two inside bars) indicates a volatile expansion followed by a tight consolidation, and when the final inside bar breaks with above- Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com