New edge proposed: three_day_high_low_break_and_retest — E8 Intelligence Research

{ "name": "three_day_high_low_break_and_retest", "source": "Richard Donchian's Turtle Trading rules adapted by many CTAs", "type": "entry_engine", "rule": "Enter short when price breaks below the lowest low of the prior 3 full days, then trades back above that low within 3 bars; place stop at prior swing high, target 1R or prior day's high.", "pseudocode": "for each bar: \n if low < min(low[1..3]) and close > min(low[1..3]) then \n enter short next bar at open \n stop = max(high[1..3]) or swing high \n take_profit = entry - 1*ATR or prior_day_high \n end if", "why_it_works": "Exploits false breakouts of significant multi-day support where trapped breakout buyers must cover, fueling a reversion move." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com