I have a couple of questions about this tunnel method.
When Vegas talks about the price breaking the boundry of the tunnel as an entry point, does one have to wait for the formation of the next bar outside the tunnel boundry or is the current bar breaching the tunnel enough?
I also dont understand how the 12 EMA is used as a filter. In the document, this is what Vegas writes
How is this filtering flase positives? In addition to the price do you also have to wait for the 12EMA to breach the tunnel before taking a position?
Oh, I am new here, but this forum is great! I have been demoing for a month now and plan to do so for a while longer. I am looking at CMS for when I decide to go live.
Thanks.
When Vegas talks about the price breaking the boundry of the tunnel as an entry point, does one have to wait for the formation of the next bar outside the tunnel boundry or is the current bar breaching the tunnel enough?
I also dont understand how the 12 EMA is used as a filter. In the document, this is what Vegas writes
QuoteDislikedPut the 12 ema [1 hour] on your screen with the rest of your indicators. When everything is at the same price [tunnel, current market price, 12 ema] sit up and take notice. When the market breaks away from the tunnel, there is a very high probability of a strong market move coming. I don't need Gann, because this gives me time, the square of time, and price all in equilibrium. When it breaks, it goes.
How is this filtering flase positives? In addition to the price do you also have to wait for the 12EMA to breach the tunnel before taking a position?
Oh, I am new here, but this forum is great! I have been demoing for a month now and plan to do so for a while longer. I am looking at CMS for when I decide to go live.
Thanks.