Trend Signals from Dual-Period High-Low Price Averages

Summary

This price-action strategy compares recent closing prices with averages derived from the highest highs and lowest lows over fast and slow lookback periods. It also combines the midpoints of those ranges, including delayed values, as additional filters. Long entries require the close to be above the selected fast and slow reference levels; short entries require it to be below them. The stated example periods are 9 and 26 bars, and positions reverse when the opposite signal appears.

The document presents the method as a trend-following approach intended for markets such as crypto and stocks. It offers no evidence of profitability: the published backtest configuration covers only a short interval on BTC/USDT futures, and no results are reported. The strategy has no explicit stop-loss module, so losses may grow before an opposing signal arrives. Its own cautions include whipsaws in ranging markets, parameter overfitting, and the need to test across longer periods and more instruments.

Key ideas

• The strategy derives reference levels from high-low ranges over fast and slow lookback periods.
• Long and short entries require price to lie beyond several range-average thresholds.
• An opposing signal is the stated exit condition, and no separate stop-loss rule is included.
• Range-bound markets and limited backtest evidence make robustness testing important.

Tags

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