1. BUYS = Watch for RgMov to make a 2-month high, then buy readings of -100 followed by trading above, then closing above a previous day's high. Exit at 3 ATR rally or when reaches +100 adding each 1 ATR advance. Stop = 3 ATR's OR if RgMov makes a 2-month low on a closing basis (2 months = 44 days)
2. SELLS = Watch for RgMov to make a 2-month low, then sell readings of +100 followed by trading below, then closing below a previous day's low. Exit at 3 ATR decline OR when reaches -100, adding each 1 ATR decline. Stop = 3 ATR's OR if RgMov makes a 2-month high on a closing basis (2 months = 44 days)
There are plenty of other exit strategies - including using a trailing stop once the has reached the opposite extreme. A simple trailing stop can be over/under the 3-day range.
Tim 1:12PM EST, March 6, 2015