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Tunnel Binary Trading Strategy

Discussion in 'Advanced Options Strategies' started by Lily, Sep 21, 2015.

  1. Lily

    Lily Forum Member

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    What is Tunnel Binary Trading Strategy?
    In this strategy, we are looking for a break in a tunnel pattern. This strategy is suitable for four-hour, daily, weekly and monthly time frames.
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    The tunnel binary trading strategy may be applied on all currency pairs, commodities, indices, stock and futures contracts.

    How to Trade Tunnel Binary Trading Strategy?

    A high/above/call/up position will be entered when the tunnel is in a downtrend and the tunnel is broken in an upwards direction.
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    Similarly, a low/below/put/down position will be entered when the tunnel is in a uptrend and the tunnel is broken in an downwards direction.

    It is pertinent that at least 30 pips move is required for a valid breakout.

    Practical Demonstration

    You can see the practical demonstration of Tunnel binary trading strategy in the following EURUSD chart where we entered a High/Above/Call position after a 30-pip breakout.

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