Great stuff Walt price action at its simplest - much clearer than all that squiggly line stuff!! Those interested might also look for posts by oattrader at the old Yahho financial groups he was a venerable trader who put this forward as a really simple way to trade. From memory the method he described was pretty much identical. I think you can also find indicators and money management ideas at NQOO's trading naked site.
For a similar but almost contrary technique (its essentially a failure of this). Check out trader vic's 2B's summarised here
http://www.dacharts.com/2b.htm.
I may be mistaken but I believe Dunnigan used something similar too. Certainly worth reading for those interested in stuff based on pure price action.
Cheers.