Good point. I've been trained to cite the seminal paper. A follow-up paper that documents a similar pattern based on more recent data is: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2500335
I think asking opinions and testing is the way to go... Asking good question sometimes turns up good ideas. But definitely test!
Try to find a way to backtest and look for the reasons!!! Many things sound reasonable when presented well. Some work and some do not. Also, some edges end... like following a short seller in low volume stocks. Others never worked in low volume stocks because of spread/liquidity. On a higher level, the big boys like Renaissance Technologies and Dalio test, test, test. _____ 1. Test 2. Scour the literature 3, Develop relationships with people who have successfully done what you want to do-- and preferably still are! Sometimes number 3 is enough but it is often very hard to do.
On a cautionary note: The Candy Store Usually Closes Most big edges end faster and faster because of technologIcal progress and quicker information flow. Years ago Shoenfeld Securities was the largest prop firm. They self cleared and put up all the money for their traders. For years their basic method, a well researched and successful manual daytrading method was: Buy extreme green and sell extreme red. Advanced traders could carry overnight and for years their traders did not even have level 2. Then they brought in a highly successful scalper to teach his relatively simple method. The firm is still highly successful but after a good number of years they fired the buy the green and sell the red mo mo players as well as shut down their scalpers because their manual trading version of those simple things had stopped working The firm adapted and now does other things.
%% Its hard to stop an elephant/ bull elephant/ cow elephant ; TUSK has been still been making higher closes. LOL True; NOT a prediction.