tunnel trading strategy trackid sp-006

The tunneling scheme is a multicurrency trading system for which the recommended time interval is considered to live one hr (H1) chart, simply, if desired, it can be used along M15 charts for scalping purposes. When trading at shorter intervals, you should clearly understand that there will be more false signals. The favourable standardised indicators are used in this scheme:

Mathematical notation moving average EMA (Period 18) should be piebald red;
Exponential ahorse average EMA (Period 28) — it is necessary to also rouge it red;
Sliding average Linear Weighted — WMA (Period 5) — should be painted blue;
Sliding average WMA (Period 12) — yellow;
Indicator of RSI (21).

The burrow, consisting of two red lines, forms the billowing ordinary EMA, the periods of which are 18 and 28. With their help, the beginning, equally well as the end of the trend, are determined.

Thedannbsp;WMA moving average withdannbsp;5/12 period will indicate when you involve to enter the trend.

There are the tailing rules for concluding a trade on this strategy:

A trade needs to be opened lonesome when the Marxist burrow on the chart is severely narrow or the bolshie lines intersect. The buy up signal is given at the import when the average WMA, the period of which is 5 and 12, crosses the red tunnel emerging from the two EMAs upwards (Picture 1).

tunnel strategy

The strongest signal is considered to be the moment when the installed touring average WMA with period 5 crosses from the derriere up WMA with period 12. In a situation where the medium 5 and 12 WMA cross the red tunnel from the two EMAs from the summit down,a short trade indannbsp;should be concluded (Impression 2).

how tunnel strategy works

A particularly tough signalize is indicated by the moment when the average 5 WMA and 12 WMA are cut from top off to bottom. Please note that in both scenarios – RSI available should be below the value of 50 and for buy in above the value of 50 (Picture 3).

EURUSD BID 1H since 1804 2022-02-05 to 2246 2022-02-09

The basic rules for closing a trading position

The end of the trend is indicated by the following signals:

long positions — when the price peaked on the chart, and the moving average WMA (5) crosses the WMA (12) from the top down. In this case, IT is necessary to stopping point the trading position at the current market terms.
short positions — when the price has reached the tooshie on the graph, and the moving median WMA (5) crosses the average WMA (12) from the bottom ahead. In that case, it is necessary to close the trading position at the current grocery store cost.

It is also necessary to immediately imminent the trading position honourable afterward the boundaries of the red burrow hybridization each other or there is a significant narrowing. This moment is a clear sign on of a reversal of the drift. Close the position afterwards this signalise appears, open to the other side (reverse). Do not close the trade until the red burrow lines ill-tempered each other.