New edge proposed: prior_day_poc_retest_reversal — E8 Intelligence Research
Year: 2026
Type: preprint
Abstract: { "name": "prior_day_poc_retest_reversal", "source": "Market Profile / Steidlmayer (volume-weighted average price POC concept)", "type": "entry_engine", "rule": "Enter short when price trades below prior day's point of control (POC) and closes back above it within the current session, provided the current session's range is less than 1.5 times the prior day's ATR; long counterpart is symmetric.", "pseudocode": "POC = price level with max volume (approximated by OHLCV bar with highest total volume in prior session) ; for each bar in current session: if low < POC and close > POC: enter short at close ; stop = max(high of entry bar, POC + 0.5*ATR) ; target = entry - 1.5*ATR ; if high > POC and close < POC: enter long at close ; stop = min(low of entry bar, POC - 0.5*ATR) ; target = entry + 1.5*ATR", "why_it_works": "The POC is a high-volume anchor that often acts as a magnet and then support/resistance, and a failed break (sweep and reclaim) exploits the trap of breakout traders." } 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: W7212162769
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