So I want to say it out loud (or at least type it out loud) to make sure I got it correct; but I hope if it's not, someone will correct me on it. There is a part that I'm not 100% sure about (how to use the weekly part).
On the 4 Hour Tunnel System (or the Fhunnel as I call it).
1) We look at the weekly 21 and 5 SMA's, and if the difference between them keep growing, then we have a semi-confirmed bull or bear run.
1a)(How I'm interpreting this) : This means, when the 5 SMA is above the 21 SMA, and the 5 SMA-21 SMA is greater than 5 SMA-21 SMA from the last bar, then we have a confirmed bull run, and so we are looking for only buy opportunities on the 4 Hour chart. And visa versa for the bear runs.
2) After looking at the Weekly chart, we know that prices oscillate up and down, and so we want to only trade one side of the oscillation, as determined by the weekly. We enter, when the 8 SMA turns the corner, and starts to head toward the direction as predefined by the weekly.
3) Once we get into a 3 unit position on the 4 Hour chart, we start to take profit at fib levels; based on the 55SMA + fib numbers [144,233,377].
So in theory, if the 4 Hour system hits a home run, then it will have cleaned out all 3 units, (144+233+377 = 754 pips).
This concept is basically, Tide, Wave, Ripple. The Weekly is the direction of the tide, and we are trading the wave, but only when the wave is in the direction of the tide.
Am I reading this right?
On the 4 Hour Tunnel System (or the Fhunnel as I call it).
1) We look at the weekly 21 and 5 SMA's, and if the difference between them keep growing, then we have a semi-confirmed bull or bear run.
1a)(How I'm interpreting this) : This means, when the 5 SMA is above the 21 SMA, and the 5 SMA-21 SMA is greater than 5 SMA-21 SMA from the last bar, then we have a confirmed bull run, and so we are looking for only buy opportunities on the 4 Hour chart. And visa versa for the bear runs.
2) After looking at the Weekly chart, we know that prices oscillate up and down, and so we want to only trade one side of the oscillation, as determined by the weekly. We enter, when the 8 SMA turns the corner, and starts to head toward the direction as predefined by the weekly.
3) Once we get into a 3 unit position on the 4 Hour chart, we start to take profit at fib levels; based on the 55SMA + fib numbers [144,233,377].
So in theory, if the 4 Hour system hits a home run, then it will have cleaned out all 3 units, (144+233+377 = 754 pips).
This concept is basically, Tide, Wave, Ripple. The Weekly is the direction of the tide, and we are trading the wave, but only when the wave is in the direction of the tide.
Am I reading this right?
google: