New edge proposed: aroon_oscillator_zero_cross_regime_filter — E8 Intelligence Research

{ "name": "aroon_oscillator_zero_cross_regime_filter", "source": "Tushar Chande (1994) Aroon indicator, canonical trend-regime filter in technical analysis literature", "type": "filter_flag", "rule": "Only take longs when Aroon-Up(25) - Aroon-Down(25) crosses from below 0 to above 0 within the last 3 bars on the 1H timeframe, and only take shorts on the symmetric downward cross; skip all entries otherwise.", "pseudocode": "n=25\nup = 100*(n - (n - bars_since_highest_high(n)))/n\ndn = 100*(n - (n - bars_since_lowest_low(n)))/n\nosc = up - dn\nlong_ok = (osc[0]>0) and (osc[1]<=0 or osc[2]<=0 or osc[3]<=0)\nshort_ok = (osc[0]<0) and (osc[1]>=0 or osc[2]>=0 or osc[3]>=0)\nreturn long_ok, short_ok", "why_it_works": "The Aroon zero cross marks the moment recent-extreme recency flips in favor of one side, which historically coincides with the birth of a persistent directional move on FX/gold rather than chop." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com