New edge proposed: waiting_for_drop_base_reversal — E8 Intelligence Research
Year: 2026
Type: preprint
Abstract: { "name": "waiting_for_drop_base_reversal", "source": "Tom Williams (VSA) / Wyckoff methodology", "type": "entry_engine", "rule": "After a downtrend, enter long when a wide-range bearish bar (range >= 1.5 * average 20-period range) closes at its high or in the top 25% of its range AND the next bar makes a lower low but closes above the prior bar's close (spring), with volume on the spring bar <= 60% of the prior bar's volume.", "pseudocode": "if trend_down and bar[0].range >= 1.5 * avg_range(20) and bar[0].close > bar[0].high - bar[0].range*0.25 and bar[1].low < bar[0].low and bar[1].close > bar[0].close and bar[1].volume <= 0.6 * bar[0].volume then enter_long", "why_it_works": "This captures a Wyckoff spring/selling climax where weak hands exit into strength, volume drying up confirms absorption by smart money prior to a reversal." } Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com
Author: Caldin, Andrew Stewart
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7203914141
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