Forex trading strategy #9 (Teodosi's Moving Averages tunnel)

Hello Victor,
it's been done!

Happy Forex trading!
Edward.

Looks very good indeed.Thank you for sharing.

Robby

but according to the diagram above,mr Teodosi do exit when the 5WMA and the 12WMA crosses each,how does this relate to the tunnel becoming closer to each other.......

should i wait for the 12WMA to cross the red tunnel also before i open a position(long/short),i notice that once the 5WMA crosses the red tunnel the market obey the direction in which it moves,will i have to wait for the 12WMA to cross in most cases which it does lately.

Hello Mr Edwards,
Firstly,i will like to thank you for the good work your forum has beeen rendering to many forex traders like me,your system looks very simple and profitable....more power to your elbow,also my regards to Mr Teodosi....Pls i will like to have Mr Teodosi contact email or he can also contact me here...

Miss Linda

I believe extremely narrow tunnel here is used just as a warning sign. I could be wrong... It is actually my screen shot example, where I suggested exiting on the first cross of WMAs... But, this WMA cross is tricky indeed. You will see quite often that after you exit the two WMAs "uncross"... While the red tunnel isn't crossed I believe you may add another position if you exited early.

According to the strategy rules you have to wait for both 5 and 12 WMA to cross the red tunnel. If you look at the screen shot above you will find a situation (between the last Exit and Sell marks) where the yellow 12 WMA wasn't able to cross a red tunnel and the price reversed. A conclusion here: there will be times when 5 WMA cross over the red tunnel is not enough.

Regards,
Edward.

Hi,
With the moving averages and rsi do we set them at close, open, high or low.
Thanks,
Paul

Hi Paul,

Unless specified it's always set on close by default.

Happy trading!
Edward