Tunnel forex strategy is a multi-currency (that is, it can be traded on any currency pair), the recommended time interval - from one hour (H1), though if you want you can trade in the interval of 15 minutes, but obviously you have to understand that the signals at short time intervals may give more false signals.
The graph for the chosen currency pair to set the following indicators forex (they all have a standard set of MT4 trading terminal of Forex dealing centers ):
1) The exponential sliding average EMA (18) - dye in red
2) The exponential sliding average EMA (28) - dye it the same way in red
3) moving average of Linear Weighted - WMA (5) - blue
4) moving average WMA (12) - Yellow
5) Indicator RSI (21)
Averages EMA with periods of 18 and 28 - form a tunnel of the two red lines - they will help you find beginning and end of a trend .
Averages WMA with 5 and 12 indicate to you as soon as a member of the trend , they will also help find the strength of the current trend .
Terms of the deal on tunneling forex strategy:
should open a bargain only when the red tunnel on the graph is strongly narrow or crossed!
Conclude a deal to buy then, 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 moving up 12 WMA - it gives us a particularly strong trading signal .
To purchase, the RSI should be above 50.
Conclude a deal to sell if the moving averages of 5 and 12 WMA cross formed by 2 EMA red tunnel downwards.
If the moving average 5 WMA also crosses the moving down WMA 12, which indicates a particularly strong signal .
For sale, the RSI should be below 50.
Rules out of a trading position:
Trading signals that indicate the end of the trend:
position to buy : the price on the chart and reached a peak moving average of the 5 WMA crosses the moving down WMA 12 - should close a trading position at the current price on the market.
position for sale : the price on the chart and reached the bottom of the moving average 5 WMA crosses moving up 12 WMA - should close a trading position at the current price on the market.
should immediately close a trading position as soon as the red tunnel cross the border each other or as soon as they become very narrow, and perhaps turned into one line! This is a clear sign of reversal trends.
After the appearance of the signal close a trading position, and then back (in the opposite direction).
Until such time as the red line of the tunnel have not crossed each other - should not close an open transaction!