New edge proposed: wolfe_wave_abcd_breakout — E8 Intelligence Research
Abstract
{ "name": "wolfe_wave_abcd_breakout", "source": "Bill Wolfe / Wolfe Wave trading literature", "type": "entry_engine", "rule": "Identify a 5-point Wolfe Wave on 15min-1H bars where point 3 is below point 1 (for bullish) and point 5 is below point 3 with slope of line 1-4 pointing up; enter long when price breaks above the line extending from point 1 to point 4, with stop below point 5 and target at line from point 1 to point 4 projected to point 5 time.", "pseudocode": "Find pivot highs/lows with 5-bar fractal. Identify 5 consecutive alternating pivots (1,2,3,4,5) where 1 is high, 2 low, 3 high lower than 1, 4 low higher than 2, 5 low lower than 3. Compute line L14 from pivot1 to pivot4. If price crosses above L14 after pivot5, enter long on next bar open. Stop = pivot5 low - 0.1*ATR. Target = L14 price extrapolated to bar count equal to bars between pivot1 and pivot4. Exit if stop or target hit.", "why_it_works": "Wolfe Waves capture systematic supply/demand imbalances with harmo Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com