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

I use the latest fractal to set a stop.
In MT4 you may find this indicator under Menu/Indicators/Bill Williams/Fractals.
If you don't see it there, then just download one online.

August

from walter chan,

how do you implement fractal for stop? I use MT4. :)

If I may help, I use fractals for stops. It works for me.

August, CA

Hi, What sort of Stop Loss level do you use for this system??
Mathew (Singapore)

Hey Walter,

1. yes,
2. yes, you can
3. On MT4 it'll be Linear Weighted.
Go to Menu - Insert, Indicators, Moving averages, MA Method: Linear Weighted.

can use this on any currency pair?
can use this on a daily chart?
what is WMA if I use metaTarde 4? How do I activate it? :)

Jatin,
1 hour chart means each candlestick represents 1 hour of trading.
You would encounter numerous false signals while trading it on smaller time frames. If you decide to test this Forex strategy for scalping purposes, make sure you trade it only from 8 am to 12 noon Eastern Time when Forex market is the most active. Don't even attempt to scalp during other hours, because your trading results would most likely be negative.

hi mr teodosi, u told that this strategy is only suitable for 1hr chart. This mean only one bar represents 1hr or whole chart represents 1hr? And can we scalp using this strategy in small time frames?
thanx , jatin

Hello,
Firstly,i will like to thank you for the good work your forum has been 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 becuase i have perfected his system by 50%.

Frank (frankshadows[a+t]yahoo.com)

Hi Paul,

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

Happy trading!
Edward

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

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.

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

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.

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.......