Tunnel Moving Average Forex Trading Strategy

Technical indicators are not just added unto charts to make them look colorful, they rather help traders make money.

If you have technical indicators that generate alerts that cannot be converted into profits over a period, then it is wise to stay off such trading tools.

The Tunnel Moving Average forex trading strategy is not just a colorful set of technical indicators, but one that can translate motions in the market into serious profits.

Chart Setup

MetaTrader4 Indicators: emas.ex4 (Default Setting), FIBTunnel.ex4 (Default Setting), 7 EMA

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any – 24 Hour Trading

Currency Pairs: Any pair

Download

Download the Tunnel Moving Average Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart setup gets displayed:

  1. If the green vertical bars of the emas.ex4 custom MT4 indicator gets placed within its window as seen on Fig. 1.0, price is said to be pushed to the upside, hence a trigger to buy the stated forex pair.
  2. If the violet line of the FIBTunnel.ex4 custom MT4 indicator cuts through the blue 7 EMA line in a bottom up manner (refer to Fig. 1.0), price is said to support a bullish stance, hence a trigger to go long.

Stop Loss for Buy Entry: Place stop loss a few pips below trading support.

Exit Strategy/Take Profit for Buy Entry            

Exit or take profit if the following rules or conditions holds sway:

  1. If the emas.ex4 custom MT4 indicator showcases a red vertical bar during a bullish trend, it is signaling a possible end to the bullish trend, as such an exit or take profit will suffice.
  2. If price closes below the violet line of the FIBTunnel.ex4 custom MT4 indicator when long position(s) are live in the market, it is indicating weaning bulls power, as such an exit or take profit is advised.

Sell Entry Rules

Initiate a sell entry if the following holds preference:

  1. If the red vertical bars of the emas.ex4 custom MT4 indicator gets placed within its window as seen on Fig. 1.1, price is said to be pressured lower, hence a trigger to sell the listed currency pair.
  2. If the violet line of the FIBTunnel.ex4 custom MT4 indicator cuts through the blue 7 EMA line in a top downward fashion as shown on Fig. 1.1, price is said to support a bearish stance, hence a trigger to go short.

Stop Loss for Sell Entry: Place stop loss a few pips above trading resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the green vertical bar of the emas.ex4 custom MT4 indicator is seen while a sell alert is running, it points to halting bears power, as such an exit or take profit will do.
  2. If price closes above the violet line of the FIBTunnel.ex4 custom MT4 indicator when short position(s) are ongoing, it is indicating weaning bears power, as such an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

Download the Tunnel Moving Average Forex Trading Strategy

About The Trading Indicators

The emas.ex4 custom indicator uses the MA period 5, 10 & 20 as its core.

Its red bars denotes a sell, while the green bars are indicative of a buy signal, while a more shorter orange bars define range bound conditions in the market.

The FIBTunnel.ex4 custom indicator is made up of series of lines that are closely merged to form a support or resistance level for price depending if price is aligned above or below the indicator.

The 7 EMA is an exponential moving average that has its period set at 7 and reduces the lag by adding more weight to recent price.

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