The 'Vegas Tunnel Trading Strategy' is a trend-following strategy based on the Exponential Moving Average (EMA) channel, originally proposed by trader Barry Hagg (nicknamed 'Vegas'). Its structure is simple and clear, and it has been widely examined in various financial markets such as forex, cryptocurrencies, and indices.

🎯 Overview of the Principle:

'Identify trends and enter trades in the direction of the trend through the EMA tunnel.'

📐 Core Components (3 Exponential Moving Averages)

EMA144 and EMA169 are known as the 'Vegas Tunnel', while EMA12 serves as a confirmation line for breakouts.

📈 Entry Logic

✅ Long Conditions:

Price crosses above the Vegas Tunnel (EMA144 and EMA169)

EMA12 also crosses upward through the tunnel → Trend is established

Can be combined with other signals (such as MACD golden cross, RSI upward)

❌ Short Conditions:

Price crosses below the Vegas Tunnel

EMA12 subsequently crosses below the tunnel → Bearish trend confirmation

Can be combined with other bearish signals (such as MACD death cross, RSI falling below 50)

🧠 Explanation of the Underlying Principle:

EMA144 and EMA169 form a 'trend waterfall,' filtering out small-scale fluctuations;

When the price breaks through and follows the direction of EMA12, it indicates that large funds have driven the market direction clearly;

Entering at this point is a typical 'trading with the trend'.

✅ Summary in One Sentence:

Vegas Tunnel Method = Middle EMA Channel + EMA12 Filter Line + Trend Breakout Confirmation = Robust Trend-Following Trading Strategy