Wavy Tunnel - Introduction
Disclaimer
This video is for educational purposes only. Past performance does not equal
future results.
Please do not construe any information in this video or notes below as advice
or recommendation of any kind. You can lose money trading. If you cannot
afford to lose money you should not trade.
Remember to practice with a paper trading or demo account with any new
concept of strategy until you really get to know and understand the risk and
reward potential.
This video is copyright protected 2013. If you share this video in any format
with anyone you will be at risk of copyright violation laws in federal court.
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Wavy Tunnel PLUS
MODULE 1
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Wavy Tunnel - Introduction
Welcome to the Wavy Tunnel Trading Method
Over 30 years trading Forex, Futures and Options using Elliott Wave Analysis
One of the best Fibonacci and Elliott Wave based Trading Systems
This System can be traded on its own or in combination with other methods
The Wavy Tunnel Plus combines Elliott Wave Analysis with a methodology that
elaborates on 4 Trend Trade Setups and 2 End of Trend Trade Setups
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Modules
The Course Outline
Module 1: Introduction and Overview
Module 2: Trend Following Trades – NEW Examples!
The Wavy Tunnel
Module 3: End of Trend Trades – NEW Examples!
Module 4: Trade Management – NEW Examples!
Module 5: Trading Live with 3 Time Frames
Module 6: Elliott Wave Connection
Module 7: Wavy Tunnel PLUS – NEW!
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Welcome to Module 1
≈ Introduction
Module 1
≈ Trading Market Cycles
Learning Objects
≈ Wavy Tunnel Chart Setup
≈ Overview of Wavy Tunnel Trades
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Introduction
Objectives
1. Understand the background behind the Wavy Tunnel
2. Look at the Market Cycles to see how the Wavy Tunnel Tracks the Cycles and
Waves
3. Get a broad overview of all the Wavy Tunnel Methods and how they apply to
each Market Cycle
4. Begin picturing yourself Riding the Waves and Cashing in on Profits using the
Wavy Tunnel PLUS system
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Trading Market Cycles
Technical Analysis Training
1. In technical analysis training courses you learn to identify trends and sideways markets
2. Trend and Sideways markets comprise the market cycles and require different strategies
and mindsets to trade
3. Once the cycle is identified, the trader learns which strategies to use to trade each cycle
4. The analysis tools learned are combined to create high probability trading strategies
5. But without Elliott Wave Analysis and Harmonics traders do not have the complete
picture yet
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Trading Market Cycles
The Elliott Wave Modules and The Wavy Tunnel
1. In The Elliott Wave Modules, we label these cycles and call them waves. We learn about
sub-waves too
2. We learn how to find the End of the Trend, and what a Trend, Correction and Reversal
Pattern truly means in the context of the big picture
3. Finally, we bring it all together and introduce a powerful trading strategy which
addresses all market cycles – the WAVY TUNNEL
4. Once we learn how Harmonic Patterns complement Elliott Wave Analysis, we will then
revisit The Wavy Tunnel to tie it all together
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Trading Market Cycles
Trend and End of Trend
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Trading Market Cycles
Trend and End of Trend
Learn the setups to The FX Trader’s EDGE Trained Trader uses 3 types of strategies:
trade pullbacks,
breakouts and 1. “End of the Trend” strategies at market tops and bottoms
breakdowns during 1. Learn how to buy and sell at market tops and bottoms in
trend moves. any time frame
2. Sideways Strategies
1. Range trades
2. Look for Breakouts and Breakdowns
3. Trend Continuation Strategies
1. Momentum trades
2. Breakout and Breakdown trades
3. Retracement trades
The Wavy Tunnel Captures all of these Strategies!
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Wavy Tunnel Chart Setup
“Wavy Tunnel” strategy
≈ Moving Average Crossover System
≈ Combines Vegas Tunnel (“Tunnel”) and Raghee Wave (“Wave”) with Bill
William’s Awesome Oscillator (“CAO”)
≈ Provides excellent entry and exit points
≈ Visually appealing
Ideal for day, swing and position trading
≈ Use with an Elliott Wave overlay for confirmation
The WAVY TUNNEL SYSTEM has Evolved over Time!
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Wavy Tunnel Chart Setup
Key Elements
≈ Moving Averages
≈ Tunnel
≈ Wave
≈ 12-period EMA Filter or “12-EMA”
≈ Awesome Oscillator or “CAO”
Swing Time Frames Day Trading Time Frames
Take trades on the
4-hour middle time frame 1-hour
1-hour or the lower time 15-minute
15-minute frame 5-minute
We will learn a top-down approach to trading using 3 time frames.
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Wavy Tunnel Chart Setup
Wave EMA Upper Middle Lower Awesome
Parameters Oscillator
EMA Period 34 34 34 SMA
On High Close Low 5
Color Purple Purple Purple 34
Thickness Medium Medium Medium 5
Tunnel EMA Fast Slow Filter (CAO)
Parameters
EMA Period 144 169 12 MACD
On Close Close Close histogram
Color Black/White Black/White Green
Thickness Medium Medium Medium
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Wavy Tunnel Chart Setup
VEGAS Tunnel
Raghee Wave
12 EMA Filter
Awesome Oscillator
Download MotiveWave charts for 14-day trial at: [Link]/EWcharts [Link] ©2013 FX Trader’s EDGE TM All Rights Reserved
Overview of Wavy Tunnel Trades
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Break out Trade 1 (BO-1) Wavy Tunnel Trades – Trend Following
BO-1 kicks off the
Trend Move when the
Wave crosses below or
above the Tunnel
Download MotiveWave charts for 14-day trial at: [Link]/EWcharts [Link] ©2013 FX Trader’s EDGE TM All Rights Reserved
Break out Trade 2 (BO-2) Wavy Tunnel Trades – Trend Following
Wave turns
dramatically and
leaves Tunnel behind
Candles start forming
below 12 EMA
Download MotiveWave charts for 14-day trial at: [Link]/EWcharts [Link] ©2013 FX Trader’s EDGE TM All Rights Reserved
Break out Trade 3 (BO-3) Wavy Tunnel Trades – Trend Following
Wave crosses Tunnel and
price retraces back to wave.
Candles form below wave
and close below 12 EMA.
Download MotiveWave charts for 14-day trial at: [Link]/EWcharts [Link] ©2013 FX Trader’s EDGE TM All Rights Reserved
Break out Trade 4 (BO-4) Wavy Tunnel Trades – Trend Following
Wave 4 corrects to the
Tunnel after Wave 3 ends.
Candles form above wave
and close above 12 EMA.
Download MotiveWave charts for 14-day trial at: [Link]/EWcharts [Link] ©2013 FX Trader’s EDGE TM All Rights Reserved
Price to Wave Trade (PW) Wavy Tunnel Trades – End of Trend
Price to Wave with
Awesome Oscillator
Divergence
Download MotiveWave charts for 14-day trial at: [Link]/EWcharts [Link] ©2013 FX Trader’s EDGE TM All Rights Reserved
Fill the Gap Trade (FG) Wavy Tunnel Trades – End of Trend
Fill the Gap Trade
Divergence
Download MotiveWave charts for 14-day trial at: [Link]/EWcharts [Link] ©2013 FX Trader’s EDGE TM All Rights Reserved
Summary of Wavy Tunnel Trades
SUMMARY – SIX TRADES:
FOUR Trend Following Trades: BO-1: Break Out
BO-1: Break Out
BO-2: Break Out
BO-3: Break Out
BO-4: Break Out
TWO End of Trend Trades:
PW: Price to Wave
FG: Fill the Gap
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Overview of Wavy Tunnel Trades
SUMMARY – Questions:
Why does the Wavy Tunnel Use Six Trade Setups?
≈ The markets offer different trading opportunities, depending on what part of the market
cycle or Elliott Wave pattern we are in
≈ Wavy Tunnel trading tunes our visual sense to find the trend trades and the trend
reversal trades
≈ With the Wavy Tunnel traders will be able to profit no matter what part of the market
cycle we are in
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Overview of Wavy Tunnel Trades
SUMMARY – Questions:
What is Required to succeed with the Wavy Tunnel?
≈ Mastery of at least 2 of the Wavy Tunnel setups
≈ Consistency with Time Frames traded (day or swing or both)
≈ Proper risk management (setting stop losses)
≈ Good money management (determining position size)
≈ Excellent trade management (taking profits and moving stops)
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Overview of Wavy Tunnel Trades
SUMMARY – Questions:
Are there specific rules to follow with the Wavy Tunnel?
≈ Wavy Tunnel Trading is a System which has rules. It is designed to be used by following
the rules without emotion
≈ Define the Trade Plan to avoid emotional trading. Most trades are unsuccessful when
they don’t have a trade plan or when they don’t follow it
≈ So, learn the rules, follow the plan, and practice, practice, practice to internalize the
Wavy Tunnel Setups
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Overview of Wavy Tunnel Trades
SUMMARY – Questions:
How should I get started to build confidence with this method?
≈ Find these trades over many days, until you internalize the setup
≈ Try to understand the theory behind the system
≈ Take positions on a demo account until a track record of successful trades is established
≈ Implement the method correctly
≈ Do not guess where the market is headed until the setup takes you there
≈ Do not think, just act in executing the trades
≈ Think only at the end of the trading day or week, when reviewing the setups
≈ Document every trade with a screen capture
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