Free Forex Indicators (MT4), Trend Following Indicators

Renko Donchian Channel Reversal

Renko Donchian Channel Reversal applies a swing forex trading strategy to plot reversal trade signals for its users. This trading system has been designed for short term trading purposes thus, suits great with M1 to M15 timeframe charts to facilitate the forex scalpers.

This Indicator can be applied to trade all kinds of forex currency pairs. Moreover, its simplicity of use offers great advantages in reading and understanding the trade signals, especially for the newbie traders.

Renko Donchian Channel Reversal Overview

Once you’re done with the installation of the indicator at the MT4 terminal, your trading chart will appear like the following image:

Renko Donchian Channel Reversal Overview

Renko Donchian Channel Reversal Anatomy

Renko Donchian Channel Reversal Anatomy

  • Ay Donchian Channel: This channel is formed using 3 dynamic bands. The upper and lower band works as dynamic resistance and support respectively. The mid band indicates the direction of the current trend like moving averages. Price closing above its level signals bullish bias and closing below its level to indicate a possible bearish movement of the market trend.
  • CCI: CCI stands for Commodity Channel index. CCI value above 100 represents the bullish momentum of the market. CCI value turns below -100 signals the bearish momentum of the market.
  • Awesome Oscillator: Mostly works as a momentum signal filter. Awesome Oscillator turns positive to confirm the bullish momentum of the market and turns negative to validate the bearish thrust of the market momentum.

Also Read: How to Trade the Head and Shoulders Pattern

Renko Donchian Channel Reversal: Buy Conditions

Renko Donchian Channel Reversal Buy Parameters

  • Price breaks the upper Ay Donchian Channel
  • CCI value reaches above 100
  • Awesome Oscillator turns positive
  • Buy triggers when the above conditions are met
  • Set stop loss below the lower Ay Donchian Channel
  • Exit long/take profit whenever CCI value drops below 100

Renko Donchian Channel Reversal: Sell Conditions

Renko Donchian Channel Reversal Sell Parameters

  • Price breaks the lower Ay Donchian Channel
  • CCI value reaches below -100
  • Awesome Oscillator turns negative
  • Sell triggers when the above conditions are met
  • Set stop loss above the upper Ay Donchian Channel
  • Exit short/take profit whenever CCI value rises above -100

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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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About Trend Following System

Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.

Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.