Help with Vegas 4HT

Hello,

I am new to trading forex and new to the Factory (first post). I have read through many posts including the beginners section for a few months now. I have a demo account, using MT4, and have downloaded and read through all the Vegas documents from the 1HR to 4HR, as well as VWB 1 and 2, and have installed all the indicators for MT4.

Here's my question on the 4 HR tunnel method....

If I'm doing this right, I have identified that since about the last week in August, we are in a slight down trend (looking at the weekly charts on GBP with the 21 EMA and 5 SMA as my guide).

Now, I turn to the the 4 hour chart for the GBP and I am looking to "go short ONLY???" after the 8 SMA crosses higher through the 55 SMA and then starts to slopes negative?

But wouldn't I be missing a lot of bull runs? As an example, just this week from the 24th to today (Friday) there was a tremendous move up in the slope of the 8 SMA. Shouldn't I have been long the GBP as soon as the slope changed (even though it would be violating the whole jist of the method and what the weekly was indicating)?

There is one sentence in Vegas' document that says "There will be times when the slope will change and the 8 SMA will not be above/below the 55 SMA, and we will use only 1 1/2 units..."

Is this last sentence the answer to my question? I'm not sure, so if anyone who understands the 4 hour tunnel could help me out I would be very grateful.

And BTW, this forum is terrific and thanks to all of you who run and contribute.

I am also new here but i will like to ask you a question that u may see as ridiculous,..by saying the 8 SMA to move higher through the 55 SMA,does that mean the 8SMA CROSSES FROM BELOW THE 55SMA...i confused as i have opposite fo everything here.

Wait for a slope down next week. Someone came out with a similar system where they enter the trade as soon as they see the slope of the 8 turn. It's call ej_4h method.

I don't recommend jumping in after you missed it though. Unless it's near the beginning retracement. I got in trouble with that many time.

pharmadap,

Yes, that is what I mean. The 8 crosses the up through the 55 from below, and then Vegas says to wait until it then changes slope and starts to head back down again, and at that point, we go short. We would be, in essence entering off a rally in a bear trend, which is what my interpretation of the 4 hour tunnel is all about.

What I want to know is after it starts sloping downward, if it starts to slope back up again at anytime (whether it be over or under the 55, is it OK to go long?

This past week on the GBP (10/24/06 - 10/27/06) would be a good example. The over all trend in the GBP has been down, but going long this week would have been pretty profitable.

If so, this contradicts my interpretation of Vegas 4Hr method because I would not be looking to "go short only" by buying rallies in a bear trend.

nitman,


Thanks. I'm not familiar with the ej-4h method. I do believe there will be a slope down next week or sometime in the very near future. But I could have caught it going up this week at the very beginning when the 8 SMA turned and sloped back up. And there have been many times recently when I could have done the same even though the overall trend has been down.

However being a new trader I have laid off going long becuase that has not been my interpretation of Vegas 4 Hour tunnel document.

I would just like some clarification of the Vegas method.

I also need some clarification. I understood the "slope" as being purely mathematical. I took it as the SMA5 - SMA21. If the difference rises, bull signals only; if falls bear run. But upon looking at the charts, sometimes the prices "pinch". The SMA5 goes down, but the SMA21 rises. I am assuming this is a consolidation and to stand back.


I was confused about this also, but I think he meant if you are trading bull only, but the 8SMA is actually below the 55SMA when the slope changes, only trade 1 1/2 units. The question I have is the slope of the 8SMA would change upward, but the 55SMA probably would still be on a downward trend, offering a "pinch". I assume they both HAVE to be going in the same direction, and then when the 8SMA widens the gap do you go long.

I know I am missing a key point here.

This system upon heavy study seemed to make so much sense. I am having trouble also putting it into use. I would be hard pressed to short the EUR USD, but on the weekly, the SMA5 actually crossed below the 21EMA.

Any more documentation on this method, or anyone who has demod it successfully would be appreciated.

Athalon,


Yeah, we need some clarification on these things. Hopefully a Vegas "expert" will read this post and shed some light on our confusion. Thanks.

grajo

I'm not a vegas method expert in anyway.
A lot of questions about vegas tunnel have been already answered in a thread called 'lost in the tunnel' (among other things an interesting clarification by diallist on ma slope change).
Use FF search feature and dig deeply.
Hope it helps
QG

Thanks QG,

I am in the process of reading throught that thread. There's a lot of info in there, but hopefully I will find an answer to my original question I posted at the start of this thread.

Dial has an interesting chart on post #58 of the "lost in the tunnel" thread which I believe may start to answer my question. I will continue searching however. Thanks again for the suggestion.

grajo

I too will look through the thread and thanks much.

Hi,

Does anyone here have 4hr vegas indicator? Could you please post here?

Thanks in advance.

Hi Yacob

I hope this helps.

Thanks gico.

has anyone developed a 4 hour tunnel for VT, yet?

Many thanks in advance to anyone who has.

Vegas stopped using the Weekly as the trend indicator because of the lag. I believe u'll run into this as u read further in one of the threads. In the daily he speaks of the, if memory serves, Green dots that basically are marking the swing high/low areas. One tip I have used: Load the indicator:
INSERT/INDICATORS/Bill Williams/FRACTALS onto the daily chart. The little arrows indicate the last swing high/low. The trend is easier to see this way and these compare nicely to the 'Green Dots" Vegas speaks of.
On the GBP/USD daily I see a short developing on the Daily confirming a short signal on the 4 hour.
Good Luck.

Thank you Green,

I know Vegas mentioned there is a lag, but I did not remember reading anything about a possible better way. I'll check the threads again too.

I will try the Bill Willimas indicator and see if that adds a little better clarity (and timing). Thanks again.

The pertinent data for the change is found in the Vegas Wealthbuilder Part 1.doc

"Currency Daily’ can help you in implementing the 1 hour and/or the 4 hour tunnel methods."

<snip>>snipped<

"With the 4 hour tunnel method, I am inclined to use ‘The Vegas Currency Daily’ black dots as guideposts for determining whether to be long or short from the signals. The difference in the values of the weekly MA’s [moving averages] in determining long or short can often lag the market quite dramatically. If the black dots are above the daily tunnel, initiate short positions when you get the 4 hour signal, and if the black dots are below the daily tunnel, initiate long positions when you get the 4 hour signal."

The dots are 'Black Dots' (memory failed me )

I read the above as a move away from using the weekly and to using the Daily to determine Trend direction and the direction a trade should be taken.in the 4 hour and hourly. I trade the Daily so have poured over this doc several times. I do not so much use the 4 hour or hourly except for confirmation.
Good Luck
</snip>

Hi guys,
where can I download the "vegas currency daily" indicator?
thank you

Check out this link. I think you'll find them here:

http://www.forexfactory.com/forexfor...ead.php?t=4365

are vegas currency daily and FFtunnel chart the same indicator??
THANK YOU