Environment: Strong trending markets that make new highs that then proceed to fail by taking out a recent low and then reverse again to make new highs

Strategy Rules:

Long Trade

1.    Look for a currency pair that is making a 20-day high
2.    Look for a pair to reverse over the next 3 days to make a 2-day low
3.    Buy the pair if it takes out the 20-day high within 3 days of making the 2-day low
4.    Place the initial stop a few pips below the original 2-day low that was identified in step 2
5.    Protect any profits with a trailing stop or take profit by double the amount risked

 Short Trade

1.    Look for a currency pair that is making a 20-day low
2.    Look for a pair to reverse over the next 3 days to make a 2-day high
3.    Buy the pair if it takes out the 20-day low within 3 days of making the 2-day high
4.    Place the initial stop a few pips above the original 2-day high that was identified in step 2
5.    Protect any profits with a trailing stop or take profit by double the amount risked