![]() The asset price reaches the last Fibonacci number corresponding to 377 pips from the EMA tunnel.At the same time we keep open in the market the final position portion until any of the following conditions are present: If the trade develops in our favor, as the market moves in the direction of our position, we can take partial profits in successive Fibonacci numbers (in the envelopes).The stop loss and reverse positions are placed on the opposite side of the tunnel once a position is open in the market.Conversely, if the price breaks below the lower line of the tunnel the trader should open a short position. Each time the price breaks above the upper line of the tunnel the trader should open a long position. ![]() Wait until the price of the asset analyzed reach the tunnel area. ![]() In order to define the system envelopes we use the Fibonacci sequence and for this strategy the numbers used are as follows (these numbers correspond to a number of pips from the tunnel EMAs): 54, 89, 144, 233 and 377. Meanwhile the 12-period EMA is used as a filter. Overall, the EMA of 144 periods and the EMA of 169 periods form what Vegas called a “tunnel”, in other words a price tunnel.
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