Lost in the Tunnel...

Quoting xspowerx

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Gentlemen, with this new method, and correct me if I am wrong, there are no current buy or short signals... I do not see a weekly, daily, and 4hr agreeing on any currency.

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Quoting diallist

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Just for giggles, I overlaid a BWILC Median Grid over the Fibonacci lines on the EUR/USD 4 hour chart. This might be a useful discretionary addition to the vegas 4 hour method. No hard and fast rules, just an idea.

I wasn't sure whether to post this here or in the BWILC thread.

Dial

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Quoting kwalberta

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The only changes we have made is that we now use daily candles with 24 and 28 ema's respectively as a guide in trading. Create a daily chart, then overlay 24 and 28 ema's, then plot the 144, 233 and 377 fib numbers. Do this on a weekly chart as well, but plot the fib numbers 377, 610, and 987 [these are for gbp. Other currency pairs will be different]. Now, look at all 3 charts [the 1 hour or 4 hour depending on which tunnel method you use, the daily, and the weekly. You will immediately see the wonderful trading opportunities.

-vegas

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Quoting volan

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Has anyone noticed that the indicator sent by Vegas looks suspiciously like the one 1-hr method indicator posted at "http://www.freewebs.com/mswilson/" by SlavaFX? I had posted this link in post #135.

Since it looks so much like the original 1-hr method, I wonder if the Vegas team has gone back to their roots and are using a similar methodology on the 4-hr.

The 24/28 are very close and make a very tight "channel". If the Vegas team has gone to their roots, they may be using a channel methodoloty. In that case they may be looking for opporunities when the price is either above or below the 24/28 channel.

Here's my interpretation of what the new indicators are being used for. I'm not convineced that we are looking for increase/decrease in momentum with the 24/28, I think that If the price is above the 24/28 channel on the daily and on the weekly AND momentum is increasing (as per usual) then look for long opportunities on the 4-hr. Similarly for short opportunities.

What do you guys think of my interpretation of the new Vegas information? Does anyone have any other ideas of how the 24/28 can be used?

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Quoting diallist

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Hey guys, your recent posts are great! This is exactly the kind of brainstorming and sharing of ideas that I hope to see in the Knife section of the PF. My desire is to see traders take the information I'll be teaching and then doing some innovative thinking for themselves. I think that is an important element in becoming a great trader. Great job guys! Keep it up!

Dial

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Quote

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Brett,

Thanks for the compliments.

I truly believe the 1 hour and the 4 hour methods can stand on their own as
complete trading models as I developed them. If anyone needs them they can
email me and I will send them.

As with any trading model/system, there are inherent weaknesses that must be
explored and given great thought. Market chop around the tunnel is the
weakness of the 1 and 4 hour.

With this thought in mind, we move up in time [from 1 or 4 hour to daily and
weekly bars or candles] to help us eliminate losing trades and chop. The
theory here is that dailiy and weekly charts are more powerful than the 1 or
4 hour bar. They can give us information that is extremely valuable. So,
what we do is create daily and weekly charts [any currency pair] and then
overlay on these a 24 and 28 ema, respectively. Now we plot the appropriate
fib levels onto the daily and weekly charts.

If you do this, you will get a very good perspective of what is happening in
the market. At the extreme fib levels [overbought and oversold], the market
is begging to move the other way. Knowing this, we wait for confirmation on
the 1 or 4 hour bar [whichever method you are trading, when the signal is
given you spring into action].

I have written the code for metatrader 4 for these fib levels. Attached is
the file "Vegas Daily Currency". Use this on the daily and weekly charts.
When you first run this, you will be asked in the input section what model
number you wish to use. There are 4 models. Model #1 = 89, 144, and 233 fib
levels from the ema's. Model #2 = 144, 233, 377 fib levels. Model #3 = 233,
377, 610 fib levels. Model #4 = 377, 610, 987 fib levels. If you want more
than 3 lines of fibs [3 on each side of the ema's], after you create say
model #2, just click and insert another "Vegas Currency Daily" and choose
another model #. Of course, make sure your colors line up or it will be a
mess.

For Euro, use Model #1 and/or #2 on the daily, model #4 on the weekly. For
Gbp use model #2 and/or #3 on the daily, model #4 on the weekly. For chf,
use model #2 on the daily, model #4 on the weekly. For jpy, use model #1 on
the daily, model #3 on the weekly. In the other sections, choose what colors
and style of line you want for the fib levels.

So, now you can immediately see which trades are potentially exsplosive and
are setting up with confirmation from either the 1 or 4 hour. You get a
better visual of what the market is doing in real time. For example, do the
yen daily. See how the market hugged the upper fib level [233 on model #1]
on the daily for about 8 weeks. When it finally turned lower through the
daily tunnel it was 300 points in 2 days. That's the kind of move we want to
catch.

In the next couple of weeks I am finishing a text file which will explain
this in greater detail. I will send you this file when I am finished. It
will cover gbp/usd and the S&P emini futures contract. It will not only help
those trading the 1 and/or 4 hour tunnel method, it will be a standalone
model for those who have a medium to longterm time horizon.

When I send you the file I will be happy [at that time] to join your forum
for questions. Tell everyone to keep their pants on and just be patient.

Merry Christmas,

-vegas


>From: "Brett Jockell" <[email protected]>
>To: "Vegas" <[email protected]>
>Subject: 4hr Tunnel
>Date: Thu, 22 Dec 2005 21:25:33 -0500
>
>Vegas,
>
>I have tried this before and thought that I might have been pinging a
>defunct mailbox, but i wanted to thank you for the great work you've
>presented in your Tunnel models.
>
>Upon finding these docs, I keyed into the 4hr system and am learning to
>trade this.
>
>I started a discussion thread at Forexfactory.com and this thread has grown
>with much interest. One of the moderators has really worked on this system
>in depth and is helping the rest of us come to grasp with it.
>
>Recently one of our forum members, posted an e-mail from you which included
>a daily chart. and indicator settings. Many of us have been going nuts
>trying to figure out what it is you are doing with the 24/28 ema's. This
>"seems" to be a departure from your use of Fib numbers for MAs in previous
>writings.
>
>If you are so inclined and can find the time to explain this or at least
>your thinking on it I know we would appreciate it.
>
>I wouldn't bother you tho....youve done enough!
>
>Thanx again!
>
>Brett R. Jockell
>a.k.a. HeavyJ
>
>BTW- I'd like to invite you to our Tunnel discussion thread sometime when
>you have nothing to do. I'm sure if you would post a "Hello" you'd get a
>celebrities' welcome!
>
>http://www.forexfactory.com/forexfor...2&page=1&pp=25
>
>Have a Merry Christmas......sorry I'm not too PC

Quoting HeavyJ

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If you do this, you will get a very good perspective of what is happening in
the market. At the extreme fib levels [overbought and oversold], the market is begging to move the other way. Knowing this, we wait for confirmation on the 1 or 4 hour bar [whichever method you are trading, when the signal is given you spring into action].

So, now you can immediately see which trades are potentially exsplosive and are setting up with confirmation from either the 1 or 4 hour. You get a
better visual of what the market is doing in real time. For example, do the
yen daily. See how the market hugged the upper fib level [233 on model #1] on the daily for about 8 weeks. When it finally turned lower through the daily tunnel it was 300 points in 2 days. That's the kind of move we want to catch.

In the next couple of weeks I am finishing a text file which will explain
this in greater detail. I will send you this file when I am finished. It
will cover gbp/usd and the S&P emini futures contract. It will not only help
those trading the 1 and/or 4 hour tunnel method, it will be a standalone
model for those who have a medium to longterm time horizon.

When I send you the file I will be happy [at that time] to join your forum
for questions. Tell everyone to keep their pants on and just be patient.

Ignored

Quoting xspowerx

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Gentlement! This is great! Remember those trades I posted last night?

GBPJPY: + 90 pips

CHFJPY: +15 pips

AUDJPY: +50 pips

This is great!

Less than a month now and I will try to take this system live.

Have a wonderful holiday everyone.

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Quoting Matsu

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Yes you are right.

You will notice that the the equivalent of the daily 24/28 EMAs on the 4-hour chart is 144/168, almost the same as the 144/169 EMAs used on the 1-hour tunnel. And I prefer the 4-hour version. Add the TrendManager and 5/13/62 EMAs and I might be seeing some light at the end of the tunnel.

Regards,
Matsu

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Quoting volan

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Hey, great work!

I don't have CHFJPY, nor AUDJPY, but I do have GBPJPY and I'm looking at my indicators trying to figure out what it was that made you pull the trigger at 202.60. Were you using the new 24/28 channel? If so, how.

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Quoting xspowerx

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Hey Volan. Yes, I was using the method with the new updates. What made me pull the final trigger was seeing the Weekly's down, Daily-down trending, and finally the 8 SMA down as well. I entered them a little late for the 8 was trending down much earlier but I didn't see them till I got home and opened my system.

One thing I didn't incorporate yet was the fib numbers.

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Quoting volan

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You mention the daily down trending. Is that the 24/28 MAs downtrending. I see the weekly has reached a peak and is now heading down and I see my daily (5/21 EMA) going down, but the rate of change is decreasing, telling me that there may be a short-term trend change to the upside. What do you think?

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Quoting xspowerx

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I followed his directions exactly as he wrote them on "version 1.0" and reprogramed it on "version 2.0" LOL.

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Quoting xspowerx

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Whatever he uses it for it generated a 80% gain for me overnight and I like that LOL.

Do you have a messanger? We can talk more over that. PM me your name on any messanger. I prefer paltalk

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