Disliked{quote} I'm a little reluctant to say! Jenx has recently tested it, and is actively trading it, and I'm not (I tested the underlying idea and some variables of this indicator-combination, many years ago, but not on spot forex). I know how irritating it can be when you post a system in a forum, especially one as promising and sensible as this, having been trading it successfully for quite a while, and along comes someone else who isn't trading it and starts suggesting all kinds of "improvements" to it, which very often turn out not to be improvements...Ignored
Sell on re-entry into the top of the channel. Buy on re-entry into the bottom of the channel. The longer the price stays outside of the channel the better the odds of it being a good trade. The longer the price stays inside of the channel the worse the odds become of it being a good trade (and the greater the likelihood of a breakout). The more signals in one direction; the more likely the next signal will be in the opposite direction. The longer the price trends in one direction; the more likely a signal will be in the opposite direction. Obviously shortly after news releases things become more complicated and during the more volatile times of the day you'll have more signals.
This doesn't apply to a strongly trending market because, well, you shouldn't really be scalping during a strong trend anyway.
"The fun is in the hunt. Not the kill."