This is a trend following system which uses the Bollinger Bands instead of the Donchian Channels.
Long position:
* Price closes above the middle line.
* The fast EMA (in this case the 40) crosses over or is above the slow one (in this case the 120)
Short position:
* Price closes below the middle line.
* The fast EMA crosses under or is below the slow one.
Stoploss:
* 4 ATRs away from the price.