Double Moving Average Bounce

http://daytrading.about.com/od/tradingsystems/ss/DoubleMABounce_6.htm

Enter the trade when the high (or low) of the first price bar that fails to make a new low (or high) is broken. The following are the requirements for both long and short entries :

Long Trade

1. Price bar touches the long moving average
2. Subsequent price bar fails to make a new low
3. Subsequent price bar breaks the high of the previous price bar

Short Trade

1. Price bar touches the long moving average
2. Subsequent price bar fails to make a new high
3. Subsequent price bar breaks the low of the previous price bar

In the example trade, the bar that failed to make a new high is shown in white, and the short entry is shown by the yellow arrow. The entry is at 1.5790, with a target of 1.5740, and a stop loss of 1.5810.