This strategy takes components from turtle trading.
Turtle trading was an experiment in 1983 to prove that traders who followed a strict set of trading rules could be profitable. The two channel strategy borrows a key component from turtle trading.
The strategy is based on using 2 Donchian channels. Donchian channels were developed by Richard Donchian. The upper boundary of the channel is the highest high of the last n periods and the lower boundary is the lowest low of the past n periods.
In this strategy I use a 4 hour chart and 24 and 12 period Donchian channels. I chose 24 and 12 periods because these equate to 4 days and 2 days respectively. If you trade a different timeframe you may want to adjust the channel length to something that is meaningful for that timeframe.
There is more information and examples in this video
Donchian indicators are readily available to download. If you would like to use the double channel indicators used in the video then use the download links below.
If you are interested in Turtle Trading or Donchian channels the lnks below may be useful.