Hi Ed,
I use tunnel break out/down for a while now. The most effective is when you havea very small and short tunnel like 3 to 5 very small candlesminimum with very short or no shadow (less than 20pips long in total), the price when it breaks, goes very far like a champagne bottle lead when open.EUR/USD 1H is really good with that. It works in the direction of the RSI returning from over bought/sold.Stochastic and RSI should be in the same mode (I mean both over or below the same extreme line) Break down when RSI is coming from overbought and Break out when RSI comes from oversold. The stop loss should be 5 to 10 pips above/below the longuest candle in the setup... Because this is a setup with small candles, the risk is small arround 30Pips. usual target80pips... More effective if it is made in the direction of major trend... The tunnel could be a Chanel I mean not always perfectly horizontal.
TO BE AVOID IF ADX ISBELOW 30. ADX above30,we have more than 90% accuracy generating with 1 or 2 stup a day generating 120pips a day in average
For example. 1- In a downtrend, after a pullback rally, Stoch is in overbought and RSI is coming from overbought...the tunnel formed you place a Sell Stop at 5pips below the lowest candle. you are in the market when the price breakdown. Place a stop 5pips above the tallest candle. Stoch must follow if not, get out and take the few pips as commission free.
2-Do contrario in uptrend with a sell off pullback, stoch and RSI in oversold.
Good luck...andthanktoEdforthegreatachievement so far... thissite isunique.
