Beginners Trader Strategy - Tunnel Strategy
General Description
In this strategy, we are looking for a break in a tunnel pattern.
The strategy is suitable for time-frames of 4 hours or higher.
This strategy is suitable for all currency pairs, commodities, indices, stocks and futures contracts.
Position management
A tunnel is identified when several peaks and troughs have formed within a uniform trend.
A break in the tunnel is signaled when the rate exceeds the tunnel values by 30 pips.
Along position will be entered when the tunnel is in a downtrend and the tunnel is broken in an upwards direction.
A short position will be entered when the tunnel is in a uptrend and tunnel, and will be adjusted for each new wave until it is triggered.
The stop loss will be set 20 pips from the opposite border of the tunnel, and will be adjusted for each new wave until it is triggered.
Example long trade:
In this example, we review the strategy in the EUR/USD currency pair, in a 4 hour time-frame. The downtrend is identified by the tunnel borders being peaks and troughs of the candlesticks, as noted.
Enter a long position when a candlestick appears which breaks 30 pips over the tunnel, as can be seen here. The stop loss will be set 20 pips from the opposite border of the tunnel, and will be adjusted for each new wave until triggered.
Example of short trade:
In this example, we test the strategy in the GBP/USD currency, in a weekly time frame. The uptrend can be identified when the tunnel borders are the oeaks and troughs of the candlesticks, as displayed.
Enter a short position when a candlestick appears which breaks 30 pips below the tunnel, as can be seen here.
The stop loss will be set 20 pips from the opposite border of the tunnel, and will be adjusted for each new wave until it gets triggered.
According to this example, we would have earned 131 pips over a period of 3 months.
Whats Next?
* Fractal strategy
Or go back to the Education index
In this strategy, we are looking for a break in a tunnel pattern.
The strategy is suitable for time-frames of 4 hours or higher.
This strategy is suitable for all currency pairs, commodities, indices, stocks and futures contracts.
Position management
A tunnel is identified when several peaks and troughs have formed within a uniform trend.
A break in the tunnel is signaled when the rate exceeds the tunnel values by 30 pips.
Along position will be entered when the tunnel is in a downtrend and the tunnel is broken in an upwards direction.
A short position will be entered when the tunnel is in a uptrend and tunnel, and will be adjusted for each new wave until it is triggered.
The stop loss will be set 20 pips from the opposite border of the tunnel, and will be adjusted for each new wave until it is triggered.
Example long trade:
In this example, we review the strategy in the EUR/USD currency pair, in a 4 hour time-frame. The downtrend is identified by the tunnel borders being peaks and troughs of the candlesticks, as noted.
Enter a long position when a candlestick appears which breaks 30 pips over the tunnel, as can be seen here. The stop loss will be set 20 pips from the opposite border of the tunnel, and will be adjusted for each new wave until triggered.
Example of short trade:
In this example, we test the strategy in the GBP/USD currency, in a weekly time frame. The uptrend can be identified when the tunnel borders are the oeaks and troughs of the candlesticks, as displayed.
Enter a short position when a candlestick appears which breaks 30 pips below the tunnel, as can be seen here.
The stop loss will be set 20 pips from the opposite border of the tunnel, and will be adjusted for each new wave until it gets triggered.
According to this example, we would have earned 131 pips over a period of 3 months.
Whats Next?
* Fractal strategy
Or go back to the Education index
