Dual Thrust Breakout Signals from Prior Price Ranges

Summary

This document outlines a Dual Thrust breakout system attributed to Michael Chalek and shows how it is expressed in FMZ Mylanguage. The method uses a lookback range built from recent highs, lows, and closes. At the next session’s open, it sets upper and lower trigger levels by scaling that range with configurable coefficients. A move above the upper level opens a long position, while a move below the lower level opens a short position.

The strategy is described as a reversing system: an opposite signal also closes the existing position, with no separate stop loss. The article reports qualitative tests in trending and sideways conditions, saying the momentum approach performed better in trends and produced false signals in volatile ranges; parameter adjustment may help in range-bound markets. It provides no performance figures, transaction-cost analysis, or detailed test setup, so these observations do not establish robustness across instruments or periods.

Key ideas

• Dual Thrust derives breakout thresholds from a recent high-low-close range.
• The next session’s opening price anchors the upper and lower entry levels.
• Crossing either threshold triggers a directional position in the corresponding direction.
• The system uses an opposite signal to reverse or close exposure instead of a separate stop loss.
• The document reports better qualitative behavior in trends than in volatile, range-bound conditions.

Tags

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