New edge proposed: michael_harris_smart_money_reversal — E8 Intelligence Research
Year: 2026
Type: preprint
Abstract: { "name": "michael_harris_smart_money_reversal", "source": "Michael Harris / Smart Money Concepts (order flow reversal at liquidity pools)", "type": "filter_flag", "rule": "After a liquidity sweep of the prior 24h high or low (wick beyond extreme by >=0.1 ATR), only take subsequent entries when the next opposite-direction bar closes beyond the sweep bar's extreme toward the intended direction, and volume on the entry bar is >1.2x the 20-bar average.", "pseudocode": "if high > prev_high + 0.1*ATR or low < prev_low - 0.1*ATR:\n sweep_bar = current\n signal_bar = next bar\n if signal_bar.close > sweep_bar.high (for long) or signal_bar.close < sweep_bar.low (for short):\n entry_bar = signal_bar+1\n if volume > 1.2 * mean(volume[1:20]):\n allow long/short entry (filter flag)", "why_it_works": "Distinguishes genuine reversals from mere sweep-and-continue by requiring immediate directional close and volume confirmation, aligning with smart money liquidity-taking behavior." 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: W7204112996
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