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For newbies to forex, or more conservative traders, you can scale back and cherry-pick the best trades. Simply use the model as your guide, and take the guesswork and emotion out of trading. You will always be buying dips in a bull run, and selling rallies in a bear run, to initiate new positions. You are letting the market tell you when it has had its little contra-trend rally/break. That, in essence, is what a MOMENTUM tunnel is all about. It creates a visual space for you to see these contra-trend opportunities as they are being created. When they turn, you can pounce on the trade, and now it’s time to continue the medium-term trend. You’re not going to hit every one perfect, but you will definitely get your share if you stay patient and wait for the optimum time. Even if you screw up the entry, the trend will probably make the trade a profitable one.

I hope you can see why trading MOMENTUM tunnels [4 hour] are better than trading PRICE tunnels [1 hour]. You will have less losing trades, and there is no chop around the MOMENTUM tunnel. If the market continues to go against the trend, within a very short period of time you will only have 2, possibly 3 losing trades before the weekly trend would change. This is a very acceptable tradeoff for the new information being given to you by the market: i.e. a weekly trend change. At least for us, this means closing old option positions [at just the right time], and creating new ones [at just the right time].

Remember the old trading proverb: price = information. That’s exactly what’s happening when you get a trend change from the weekly charts. Of course, remember that there is a lag of 1 week from knowing when the high or low reading comes, because you won’t know until Friday’s close if last week’s reading was the high/low or not.

Let me just add, that MOMENTUM tunnels should work particularly well with other financial markets. Stock indices, oil, and interest rates should trade very profitably with the new method. Some of the currency crosses [eur/jpy, eur/gbp, eur/chf, eur/cad], in theory, should also work well. Vegas Jr. is going to look at these particular crosses in a few weeks to check them out, so I’ll withhold my opinions on them until he is finished.

1 Hour Tunnel Method;
www.4shared.com/file/56769685/29b9318c/1_Hour_Tunnel_Method.html
4 Hour Tunnel Method;
www.4shared.com/file/56769700/90c8253c/4_Hour_Tunnel_Method.html

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