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Forex strategies. Tunnel Forex Strategy

This Forex strategy can work for any currency pair, which makes it a multi-currency strategy... 

The most suitable time interval for the tunnel Forex strategy - from one hour (H1), although you can also run on 15 minutes interval. It is important to realize that the signals at small time intervals may give more false Forex signals. 

The graph of your forex pair becomes the next Forex Indicators (You can find them in a standard set of terminal MT4): 

  • exponential sliding average EMA (18) - in red paint 
  • exponential sliding average EMA (28) - also red 
  • moving average of Linear Weighted - WMA (5) - make blue 
  • moving average of WMA (12) - yellow 
  • Forex Indicator RSI (21) 

For trade, we always recommend only proven Forex brokers with terminal "Metatrader4": : InstaForex, Alpari, Forex4u, Admiral Markets.

EMA moving averages with periods of 18 and 28 form a tunnel of two red lines. Than’s how we find the beginning and end of the trend. 

Moving averages WMA with a period of 5 and 12 show, when you enter a trend, and in addition will help to force the current trend. 

You should open only when the red tunnel on the graph is narrow or crossed! 

Buy – Tunnel Forex Strategy

As soon as the moving averages WMA with 5 and 12 cross the red tunnel is formed up of two EMA. 

If the Moving Average 5 WMA also crosses the 12 WMA moving up - this is a very powerful trading signal.

To purchase, Forex indicator RSI must be above 50.


Sale – Tunnel Forex Strategy

If the moving average, 5 and 12 WMA cross formed by 2 EMA red tunnel downwards. 

If the moving average 5 WMA also crosses the 12 WMA sliding down - this is a very powerful trading signal. 

For sales, an indicator RSI must be below 50.

Exit a trading position

Forex signals that indicate the end of the trend: 

  • items for purchase - price on the chart and peaked at 5-day moving average crosses the WMA 12 WMA sliding down - should be closed trading position at the current price on the market 

  • items for sale - the price on the chart reached the bottom and moving average 5 WMA crosses the 12 WMA moving up - should be closed trading position at the current price on the market 

It is important to close the position if the boundaries of the red tunnel cross each other, or as soon as they become very narrow, and perhaps turned into one line! All this is a sure sign of reversal tendencies. 

After the appearance of the forex signal trading position, close and open it in the opposite direction. 

And yet, while the red line of the tunnel is not crossed each other - no need to close an open transaction!

That's the whole forex strategy, use, comment ...

Category: Forex Strategies | Views: 2167 | Added by: Tyler | Tags: Tunnel Forex Strategy | Rating: 5.0/6

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