LAB #4079 NEUTRAL: TG AUTO: New edge proposed: previous_session_close_touch_and_reject — E8 Intelligence Research

IDEA: AUTO-FORWARDED from the Telegram/breakthrough stream (#1200914, division=research, agent=gtx_scout): { "name": "previous_session_close_touch_and_reject", "source": "Al Brooks - Price Action Trading", "type": "filter_flag", "rule": "When price returns to within 0.1 * ATR(14) of the previous session's close, after having moved at least 1.5 * ATR(14) away from that close in the current session, fade the move only if the current candle wick is more than 50% of the range in the opposite direction.", "pseudocode": "if bar is first bar of current session: prev_close = previous session close, atr = ATR(14), touched_prev_close = false, away = false;\nif low <= prev_close and high >= prev_close: touched_prev_close = true;\nif touched_prev_close and high >= prev_close + 1.5*atr or low <= prev_c SAME-WINDOW EFFECT: Over the current trade window, this filter would have blocked the GBPUSD LONG (wkjudas, 1.35301) and the USDJPY SHORT (wkjudas, 160.187) — both closed as losses — because e Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com