First of all sorry for the delay.
It is the first time I upload a file to this web site. Hope I did this well.
There is no guarantee of a whipsaw back down towards lover levels. I "specialize" in the Canadian market and thus I can only speak about that market as an "expert" trader in that market. If you look at the TSX chart, during the last bear phase you will notice at least two (2) bull traps. Typically on the traditional Box and REV, whipsaws will be after 1 or 2 "X"s after the breakout. This is not the case right now thus my conviction of a new opposite trend upwards.
I believe another person compared P&F with your system. I don't get the comparison; nor do I get the point that it uses (or is a function) of other indicators. Yours is a MA and derivative MA system while P&F is a Support and Resistance identification system. The philosophies behind their design is IMHO dramatically different I believe. P&F is a breakout/ breakdown trade system and therefore is imperfect on its own. It allows for target projections which if done well can be helpful. One needs to add its own indicators to confirm "trade targets" which are not the standard double top or double bottom break out/downs. I have been using cycle analysis to complement my P&F trading decisions with what I call channel support and resistance points. And I keep it very simple.
Hope this anwers your question
Pierre Brodeur