New edge proposed: smc_fair_value_gap_mitigation_continuation — E8 Intelligence Research

{ "name": "smc_fair_value_gap_mitigation_continuation", "source": "Inner Circle Trader (ICT) / Smart Money Concepts \u2014 Fair Value Gap (imbalance) mitigation entry", "type": "entry_engine", "rule": "After an impulsive 3-bar displacement where bar1.high < bar3.low (bull FVG), wait for price to wick back into the gap between bar1.high and bar3.low and close back above bar1.high within the next 30 bars, then enter long with stop below bar2.low and target at the swing high that created the displacement.", "pseudocode": "for i in range(3, len(bars)):\n if bars[i-2].high < bars[i].low and bars[i].close > bars[i-2].high:\n gap_top, gap_bot = bars[i].low, bars[i-2].high # bull FVG\n for j in range(i+1, min(i+31, len(bars))):\n if bars[j].low <= gap_top and bars[j].close > gap_bot:\n enter_long(stop=bars[i-1].low, target=highest_high_since(i-10, i))\n break", "why_it_works": "Displacement leaves an inefficiency (imbalance) that institutional order flow tends Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com