Forex Scalping Using Renko Chart

I want to share my knowledge of this renko scalping system and donchian power which ive get from forex forum. And I have already proved and very worth it. So for all of you if want to make consistent profit from forex market use this scalping system because is very simple and accurate. Since I use this indicator donchian and Renko Chart is my profits continue. Because these indicators are not the usual indicators. And this indicator is never too late in giving the signal, and the reply signal is only accurate at the hour london and usa session because at asia session so many frequent false signals.

This is 2 based that Ive used :

Determine the stop loss

How to install renko is attached on manual (pdf) at the end of this article,

If successful then its Renkos Chart looks like picture above.

UNDERSTANDING RULES OF :

1. DONCHIAN Bands

According to Wiki om, Donchian line formed by attracting the highest price and lowest price in units of time that we specify.

Ive almost forgot to mention above, the setting for our Donchian is 30:

so at TF H1 (1 hour), numbers above 30 will display the highest point and lowest point of the last 30 hours. Donchian bands we will also be projecting its midpoint. Look at the picture donchian

Well, grandpa Donchian (who discovered this individual) observed that when the price today is higher than the highest price during the last 4 weeks, then it means prices will rise. The opposite was so. When the price penetrates the lowest price during the last 4 weeks, then it means that prices will fall. This phenomenon is finally formulated a 4 weeks rule

This simple phenomenon proved to be very powerful for decades. Thats why I started this analysis by observing the trading day this individual. Note the picture above, where if prices break through the highest point Donchian, then prices will tend to rise steadily for several hours. Also down was the same time.

Okay now there is kind of nice to be noticed. Band Donchian middle line us? And how prices are affected by it? Yup true is not aware, Donchian middle line also serves as the line Support / Resistance dynamic . awesome right Why how come?

Note that when moving from the highest point, the price will move to the center line of this first. At this time, the center line to the point of resistance. Often the price will bounce back up. If successfully passed the center line, then prices will tend to catch up to your bottom line Donchian. Pay attention and observe.

2. Renko Chart

If you usually do when we open the MT4 then the price will appear as Candlestick (CS) or Bar Chart (BC). Each stem represents the price movement in one time unit. For example we use the H1 TF 1 bar contains pricing information OHLC (Open High Low Close) in 1 hour. Or at TF W1 (weekly), then 1 bar contains information OHLC prices within a week. The new bar is formed when a period of 1 hour (at TF H1) has been exceeded; on the TFs W1, a new bar is formed when a period of 1 week was exceeded. That is why we often see a bar whose length is different, because at this price movement must be different from the price movement at the other.

Well if not guided by Renko Chart at the time. That is: the time has no effect on the formation of a new bar. So who determines what the formation of the new bar? Only one factor: PRICE.For example a bar Renko is set at 10; means every 10 pips price action it will form a new bar. Lets say within 10 minutes the price moves from 1.9000 to 1.9030, meaning there is movement of 30 pips ya, it will form three bars each of length 10 pips (or 10 ticks). In CS and BC at TF H1 (1 hour) this movement is not necessarily recorded as a new bar, as it still occurs in the same unit time.

So with Renko charts we can more quickly see where the price moves.