In the Tunnel strategy, we’re looking for a break in a tunnel pattern strategy suitable for time frames of 4 hours or longer this strategy is suitable for all currency pairs, commodities, index, stocks and futures contracts.
A tunnel is identified when several peaks and troughs has formed within a uniformed trend.
A break in the tunnel is signal when the rate exceeds the tunnel values by 30 tips.
Signals for Buy and Sell
A long positional will be entered in the tunnel is in a downward trend and the tunnel is broken in an upwards direction.
A short position will be entered when the tunnel is an uptrend and tunnel is broken in a downward direction.
The Stop loss will be set 20 pips from the opposite boarder of the tunnel, and will be adjusted for each new wave until it is triggered.