New edge proposed: tick_volume_polarity_divergence_reversal — E8 Intelligence Research

{ "name": "tick_volume_polarity_divergence_reversal", "source": "Adapted from Wyckoff's effort-vs-result principle via candle body/range polarity on tick volume (Granville, Arms); commonly called 'volume divergence with candle thrust' in technical analysis literature", "type": "entry_engine", "rule": "On the current bar, if tick volume is >= 1.5x the 20-bar average AND the candle body is <= 25% of its range (a low-thrust 'effort without result' bar), enter opposite the preceding 3-bar directional bias at the next bar open, with stop at the current bar extreme and target at 1.5R.", "pseudocode": "avg_vol = SMA(volume, 20)\nbody = abs(close - open)\nrng = high - low\nif rng == 0: skip\nlow_thrust = (body / rng) <= 0.25\nhigh_vol = volume >= 1.5 * avg_vol\nprior_dir = sign(close[1] - close[4])\nif high_vol and low_thrust and prior_dir != 0:\n enter short if prior_dir > 0 else long at next open\n stop = high (short) / low (long); target = entry +/- 1.5 * (stop - entry)", "why_i Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com