General Tunel Vegas Indicator

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The Vegas Tunnel Trading System For MT4 is a strategy for trading currencies on the Forex market. It was developed by a former trader named Barry Haigh, who disclosed the methods and rules of his system in a document he created more than 15 years ago.

The unique aspect of the Vegas Tunnel Trading System For MT4 is its use of Fibonacci levels to generate layers of support and resistance based on EMAs.

Exponential Moving Averages (EMA)​

There will be three EMAs that this system uses, and they are the following:

• 144-period EMA
• 169-period EMA
• 12-period EMA

The two longer-period EMAs will provide the "tunnel" of the system, while the 12-period serves as the filter (more of this later). The position of the price relative to the tunnel sets the boundary between long and short trades. In other words, when the price breaks above the two longer-period EMAs, a buy trade is taken and a sell trade if the price breaks below.

Take a look at the highlighted area of the EURUSD chart. Notice how close the 12-period EMA, 144-period EMA, 169-period EMA, and the price are to each other. This is usually an indication that a big move is likely to follow. And, in fact, it did. Upon breaking the tunnel, a long trade was put in place. A stop-loss and a sell trade was positioned on the 144-period EMA since it was in a prior downtrend.