# Vegas Channel Practical Interpretation: Complete Logic from Parameters to Stop Loss

Many traders have seen the Vegas Tunnel, but they don't use it correctly. Today, I'll share my practical usage, focusing more on actionable insights and less on theory.

# # The parameter settings are very simple.

The Vegas Channel consists of two sets of EMA moving averages:
- Short-term channel: 144-169
- Long-term channel: 576-676

These four lines form two channels, and the core logic is to use short-term confirmations for trends and long-term for the final stop loss line.

How to determine the level of promotion? # #

Taking the 4-hour BTC as an example, the price fluctuates around the channel of (144-169) — this is called pushing within a short-term channel. Each pullback has a significant reaction, indicating that the moving average at this level is effective.

Once the price completely breaks below and closes under (576-676), it is a true stop loss signal. In plain language: the order should be closed, and then re-observed before re-entering.

# # The pit of time frame

The fatal mistake is entering the market after looking at the 1-hour chart, and then running to check the 4-hour chart when the price moves, trying to find a reason to hold the position. This is self-deception.

Lock your perspective to the channel of the selected trading level:
- **Do 1 hour** → Focus on the (576-676) channel, this is your stop loss line.
- **Do 15 minutes** → Corresponds to a 15-minute channel, but requires accepting a lower tolerance rate.

The smaller the level, the weaker the trend signals, and the more false breakouts there are. In 15 minutes, unless you see a clear double bottom or channel confirmation, there is no reason to enter the market.

# # The essence of the trading system

Technical indicators are not meant for 100% profit, but rather to provide you with a set of objective judgment logic. The problem for many people is:
- Today use EMA, tomorrow use Bollinger Bands, the day after tomorrow use Harmonics
- Always thinking about bottom fishing, chasing highs, and betting on reversals.
- Trading has become reliant on guesswork rather than knowledge.

Persist with a system for at least 20 trades, calculate the win rate and profit-loss ratio, this is what is called data-driven theory.

Every trade must go through the complete process: trend identification → confirm support and resistance → decision ( aggressive or conservative ) → stop loss and take profit setting. Trades that violate the system deserve to incur losses.