The growing interest in data-driven trading motivates the need to clarify whether technical rules consistently generate profitability across markets with different structural characteristics. This study aims to compare the effectiveness of Trading Range Breakout (TRB) strategies in Taiwan and China, addressing the research problem of whether long positions triggered by major price breakouts can deliver sustainable returns in both markets and whether their performance varies systematically. Using large datasets of extensive historical index data, the results show that long positions based on 240-day highs or lows produce significant returns in both markets, with momentum strategies proving more effective in China and contrarian strategies performing better in Taiwan. This study contributes to existing knowledge by revealing that TRB profitability depends on market-specific conditions rather than uniform principles, thereby offering a more nuanced theoretical understanding of technical rule performance and providing investors with evidence-based insights for navigating diverse financial environments.
