The Donchian channel is an indicator used in market trading developed by Richard Donchian. It is formed by taking the highest high and the lowest low of the last n periods. The area between the high and the low is the channel for the period chosen. It is commonly available on most trading platforms.
Donchian Channels come under the channels based on indicators, similar to Bollinger Bands, Envelopes and differ slight in the way the channels are constructed around price.
The Fact that Donchian channels offer more distinctive view of support and resistance, makes it a preferred choice of trading with channels and essentially trumps other channel based indicators.
Donchian Renko High Accuracy Strategy
Donchian Channels come under the channels based on indicators, similar to Bollinger Bands, Envelopes and differ slight in the way the channels are constructed around price.
The Fact that Donchian channels offer more distinctive view of support and resistance, makes it a preferred choice of trading with channels and essentially trumps other channel based indicators.
Donchian Renko High Accuracy Strategy
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| Donchian Renko High Accuracy Strategy |
Renko Donchian Rules
An important aspect to bear in mind is how the Donchian channels align themselves. This aspect forms the most part of trading with Donchian channels and Renko charts.
Trading rules Renko Donchian Channel Reversal
Trading only reversal
Buy
When the price touches the upper band of Donchian Channel
Awesome green bar and above the zero reading
When these conditions are agree place a buy order.
Place stop loss 2-3 pips below the middle channel.
Profit Target depends by box size and pairs. and Renko moves from upper band you can book profit
Sell
When the price touches lower band of Donchian Channel
Awesome Red Bar and below the Zero Line
When these conditions are agree place a Buy Order.
Place Stop Loss 2-3 pips above middle channel.
Profit Target depends by box size and pairs. and Renko moves from Upper Band you can Book Profit
