Dual Thrust Breakout Bands and Reversal Rules

Summary

Dual Thrust is a breakout method that sets daily entry thresholds from recent price extremes. It calculates the highest high and close, and the lowest low and close over a lookback window, then takes the larger of two cross-range measurements. Multiplying that range by separate factors and offsetting the current open defines an upper buy threshold and a lower sell threshold. A break above the upper level opens a long position, closing any short first; a break below the lower level opens a short, closing any long first.

The document also describes an indicator that plots the component extrema and both thresholds to help visualize the method. It says a smaller upper factor makes long triggers easier, while a smaller lower factor makes short triggers easier, and suggests choosing parameters through historical testing or broader market judgment. It provides no performance results or detailed testing procedure, so the claim that the adaptive range may improve stability is theoretical. The repeated description contains an apparent typo in its discussion of factor comparisons, and the indicator itself is not a complete tested trading system.

Key ideas

• Dual Thrust sets breakout levels using the larger of two ranges formed from recent highs, lows, and closes.
• The upper and lower thresholds are offsets from the current open, scaled by separate parameters.
• A breakout reverses an existing position before opening a position in the new direction.
• Changing the relative threshold factors affects how readily long and short signals occur.
• The indicator plots the calculation inputs and thresholds but supplies no evidence of profitability.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.