Delayed Channel Breakout System by Peter Aan
Originator: Unknown; this is a variation of the simple channel breakout method.
Rules and formula: The simple channel breakout is a tried-and-true trading system that has been used for years. The delayed channel is an interesting variation that has been discussed in print by several writers but is less well known.
The rules are:
Exit shorts and buy long on an intraday stop one point above the highest high of x days, with the most recent day being y days ago.
Exit longs and sell short on an intraday stop one point below the lowest low of x days, with the most recent day being y days ago.