299# Scalping with the tunnel

Tunnel Trading Method

Submit by Alexander 04/03/2012

Setting for 15min Time Frame

Currency pairs:any.

Scalping with the tunnel metatrader indicators:

Moving average LWMA 10 with levels (300, 450, 600, -300, -450, -600), shift 3, price applied to close;

William's percent range (35);

Stochastic (21, 8, 5, High/low);

TC Wonders (TC Wonder it's a repaint indicator which must be confirmed).

Long Entry Rules

1. The blue dot of Entry_Signal appears as a sign of buying.

2. The price is likely at support level of any band.

3. The level of the Stochastic is at the oversold level and waiting for the cross.

4. The %R confirm oversold level.

Short Entry Rules

1. Red dot Entry_Signal appears for selling signal.

2. The price encounter with resistance (any level of band).

3. The level of the Stochastic is at the overbought level and the stochastic cross.

4. %R confirm the overbought level.

Stop loss:

for buy 5 pips below the previous swing.

for sell 5 pips above the previous swing.

Profit Target 6-15 pips depend by currency pair o when the price touches the white moving average.

scalping with the tunnel

T&C Wonders

Sell Example

In this example, I’ll show you how to enter a SELL position. The Entry_Signal shows a RED arrow. It signals a SELL position. We also notice that, the price encounters the resistance level, so it might bounce back. The stochastic is at the oversold level and it crosses. The %R, confirm oversold level, so we enter our SHORT position at 1.5192 and exit at the Profit Target 1,5178.

Buy Example

In this example, I’ll show you how to enter a BUY position. The Entry_Signal shows a BLUE arrow. It signals a BUY position. We also notice that, the price encounters the support level, so it might bounce back. The stochastic is at the overbought level and it crosses. The %R, confirm oversold level, so we enter our LONG position at 1.5100 and exit at the profit target 1.5115.