New edge proposed: crabel_2bar_reversal_after_false_break_of_open — E8 Intelligence Research

{ "name": "crabel_2bar_reversal_after_false_break_of_open", "source": "Toby Crabel, 'Day Trading with Short Term Price Patterns and Opening Range Breakout' (1990) \u2014 ORB false-break fade pattern", "type": "entry_engine", "rule": "At the London (or session) open, after a bar (B1) closes beyond the prior bar's high (for shorts) but the very next bar (B2) opens back inside B1's range and closes back below the prior bar's high, enter short at B2 close with stop above B1 high and target = 1.0x B1 range beyond the opposite side.", "pseudocode": "B1 = bar[i-1]; B2 = bar[i]\nif B1.close > B1.high[-1] # B1 is an up-thrust false break\n and B2.open < B1.close and B2.open > B1.high[-1]\n and B2.close < B1.high[-1]\n and B2.close < B2.open\n and (B1.high - B1.low) > 0:\n short_entry = B2.close\n stop = B1.high + 0.05*ATR14\n target = B2.close - 1.0*(B1.high - B1.low)", "why_it_works": "A one-bar false breakout that immediately reverses traps late breakout buyers, and the f Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com