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Tunnel Method

 

Tunnel Method

Trading the Tunnel Method

I found this somewhere online, but can’t remember where.  There are a few different versions on YouTube. My thanks and appreciation to whomever took the time to put this together.

Many of us traders have used, or tried to use, different methods of trading.  Of course, we would all like to have the “crystal ball” method, but I don’t think that it’s really available for sale at this time! LOL!

After trying many different methods, and struggling to keep a trade positive for 24 hours doing Silver 1, I’ve finally discovered a method that’s simple and works.  It’s called the Tunnel Method.

Let me describe it in short. 

Step 1: Create a 1 hour chart on whatever currency pairs interest.  I personally use MT4 platform on Oanda to follow my trades. Overlay 3 time periods: 169 EMA, 144 EMA and a 12 period EMA ( all 1 hour.) The 144 and 169 EMA’s create the tunnel. The 12 EMA is the filter and crossover indicator.

Step 2.  Fibonacci numbers are very crucial to trading with the tunnel especially 55,89,144, 233, and 377.

Step 3. Wait for the market to come into the tunnel “area”.  When it breaks above the upper tunnel boundary, you go long.  When it breaks below the lower tunnel boundary you go short. 

Step 4.  Stops and reverses are placed on the other side of the tunnel.

Step 5.   As the market trades in your direction, you take partial profits at the successive Fib numbers.  The final portion of your position is left on until one of the following conditions occur:  1) market hits the last Fib number 377 pips from the EMA’s or 2) the market eventually comes back to the tunnel and violates the other side. 

I am now a convert to long trades as opposed to the scalper I was before I came to the Apiary fund.  Hope this helps someone get through the different levels till their funded! 

Yosef Lange

 

 

Wed, 09/21/2016 - 2:43pm
 
stephano1952

Question Josef....so its the 12ema thats the trigger and not the price?

 
Zon

@yosil -

Yes - The 1 hr Tunnel method is great. But 1 hr is too short a time frame for me! So I switched to the 4 hr Tunnel method from the same guy, His moniker on forums is Vegas and it is actually called The Vegas 4hr Tunnel method. The results are truly amazing.

He also has a system called the Daily Wealth system where he uses only the Daily time frame.

 
bdwight1

Zon, am I correct in thinking that the Daily Wealth system uses something other than the Tunnel method as its strategy? Do you have any more info about it or is there somewhere you can point us to do our own research on this topic? Thx.

 
Flenar

Is this possible to set up on Alveo? I see that you are using MT4 on Oanda, and I am having some difficulties finding a trade and wondering if I might have done something wrong.