1 HR tunnel on the 4H chart

Hello all,

What would be the best way to see the 1h tunnel on the 4h chart? I've tried dividing the 144/169 by four, coming up with MA's of 36/42 for the 4H, but they don't 'look' right. I also have tried putting the daily MA's 24/28 on the 4H, but they seem to be wrong also. What would be the best thing to do?

Thanks,
HK

Hello horace kent!
Why not put the original vegas 1H tunnel on the 4H chart?
I have it there, and I'm happy with it... I see very often that the price reacts very well to the tunnel.

Isn't the MA calculated by the 144 and 169 last candlesticks? I don't understand why you want to divide them??

What charting package are you using? Sounds like you will need one that is capable of multiple timeframes in single chart.

You can't do that. The values will be off. I'll show you charts to try and explain.

First, the original 144/169 tunnel on the GBPUSD 1 hour chart:

http://i12.photobucket.com/albums/a2...fashion/1h.gif

Next, the same 144/169 MA's on the 4 hour chart. Note how it does not match up with prices the way it should. For example, last Friday, in the European session, PER THE 1 HOUR CHART, the GBPUSD moved up toward the tunnel, then came US Retail sales, and it resumed its downward movement off the tunnel. The 4h does NOT reflect this. The tunnel is nowhere near price action:

http://i12.photobucket.com/albums/a2...fashion/4h.gif

Finally, my modification. We are taking a moving average from a 1 hour chart to a 4 hour chart. Thus, to get the correct values, we must divide by 4 to get the right MA's. Therefore, the values are 36/42, and now, as you can see, they are correct in every way:

http://i12.photobucket.com/albums/a2...ashion/4hb.gif


Thoughts, comments, please.

best,
HK

Ok, I understand... but do you really want the 4H to match with the 1H chart?
I trade in the 4H chart to avoid the choppiness in the 1H...

Look at this pic:


http://img48.imageshack.us/img48/450...4gbpusdhy1.gif


The price lines up well with the fibb. levels under the tunnel... or??

I think that using 4 hour candles helps avoid the choppiness in that you will look at fewer candles to show a movement through the tunnel. Often it will take three candles on the 1h chart to move through the tunnel decisively - the chop chop - whereas on the 4h, it will appear as one, and you may enter on the next candle above/below the tunnel.

Am I making any sense?

HK

Yes you make very much sense

But... as you say, it takes 3 candles in the 1H chart, but only one in the 4H... is it because you wanna be in 1 hour before the 4H?

Two reasons:

1. To avoid the chop on the 1H

2. I think the combination of Demark(Mouteki) and Vegas Tunnel are an incredible 1,2 punch. With sound MM, massive gains are sure to come.

HK