Free Forex Indicators (MT4), Trend Following Indicators

Tunnel Indicator

Tunnel Indicator is a complete trading system that helps traders to identify the direction of the trend and also provide levels for taking entry and exits from the trades. Most traders do the mistake of trading short-term movies and ignoring the longer-term trends in the price action.

This indicator is based on Long term Moving averages which can be used to capture sustainable trends in the Forex market. Let us try to understand the working of this trading system through some examples.

Tunnel Indicator Overview

Moving averages are calculated by taking the simple average of the closing price. Short term moving average gives an indication of the intraday trend and the long term moving average gives an idea about the long term trends in the market.

Tunnel Indicator Overview

The advantage of using long term moving average is that it gives more accurate and less false signals. In this trading indicator moving average of 144 along with a moving average of 169 is used.

If the price moves above the long-term moving average then the trend is up and if the price is below the long-term moving average then the trend is down.

Tunnel Indicator Explanation

When moving average 144 moves above the moving average of 169 then traders should look for long trades and if the moving average 144 moves below the average of 169 then traders should look for short opportunities.

Tunnel Indicator Explanation

Upper and lower Tunnels are plotted in line with Moving averages which can be used as support and resistance. This indicator is useful in the 15-minute time frame in all forex pairs.

Also Read: Ultimate Oscillator with Envelopes

Tunnel Indicator: Buy Conditions

Tunnel Indicator Buy Parameters
  • Price should trade above the 144 and 169 moving average.
  • The slope of both moving averages should be up.
  • 144 Ma should move above 169 MA.
  • Breakout of the upper band is the entry criteria.
  • Traders can place a stop loss below the 169 MA.

Tunnel Indicator: Sell conditions

Tunnel Indicator Sell Parameters
  • Price should trade below the 144 and 169 moving average.
  • The slope of both moving averages should be Down.
  • 144 Ma should move below 169 MA.
  • Breakout of the Lower band is the entry criteria.
  • Traders can place a stop loss above the 169 MA.

Recommended Brokers

Share on:

I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

Leave a Comment

About Trend Following System

Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.

Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.