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Hypotheses

ETH Single-Asset Engulfing Bar Pattern Long-Short on BINANCE Daily (Second-Instrument Validation, Nison 1991 Japanese Candlestick Engulfing, Event-Driven)

Second-instrument validation of the 2-bar engulfing pattern mechanism on ETHUSDT.BINANCE — applies the Nison 1991 Japanese Candlestick engulfing pattern (which cleared iter-1 verification on BTC but was abandoned via…

Hypothesis

Second-instrument validation of the 2-bar engulfing pattern mechanism on ETHUSDT.BINANCE — applies the Nison 1991 Japanese Candlestick engulfing pattern (which cleared iter-1 verification on BTC but was abandoned via 8H translation, not by mechanism failure). Mechanism: detects bars where current bar's body 'engulfs' the prior bar's body with opposite directional close, signaling decisive market-takeover. (1) BULLISH ENGULFING: prior bar closed DOWN AND current bar opens BELOW bar[-1].close AND closes ABOVE bar[-1].open AND occurs at/near 20-bar low. (2) BEARISH ENGULFING: prior bar closed UP AND current bar opens ABOVE bar[-1].close AND closes BELOW bar[-1].open AND at/near 20-bar high. (3) FLAT otherwise. Third ETH event-driven pattern hypothesis (after ETH Climax Reversal and ETH Pin Bar both in pipeline). If validated alongside the other two ETH patterns, mechanism class transfer from BTC to ETH is firmly established across three distinct pattern types. Single-asset scope = no multi-asset translation curse. Helps direction quota (90.9% long-only).

Backtest and paper results are hypothetical. Trading involves risk of loss.