New edge proposed: keltner_channel_breakout_reversion — E8 Intelligence Research

{ "name": "keltner_channel_breakout_reversion", "source": "Chester Keltner / Linda Raschke (Keltner Channel mean-reversion)", "type": "entry_engine", "rule": "Enter short when price closes below the lower Keltner channel (20-period EMA, 2\u00d7ATR) and the next bar opens below that close, with a stop at the channel middle and target at the -0.13 Fibonacci extension of the entry range.", "pseudocode": "if bar.close < EMA20 - 2*ATR14 and next.open < prev.close:\n enter short at next.open\n stop = EMA20 (current)\n target = entry - 0.13*(entry - stop)\n exit at target or stop or end of day", "why_it_works": "Exploits the well-documented tendency of price to revert to the mean after statistically extreme deviations from the Keltner Channel lower band, especially in ranging or mean-reverting regimes." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com