Donchain Channel + Chikou | Scalping Strategy

Scalping Strategy using Donchain + Chikou →

Hey there!

Today we’ll discuss a scalping strategy using 2 powerful indicators.

➡️ Scalping means making fast profits from small price changes. The goal of a scalper is not to make an enormous profit with each individual trade but rather to make a small profit over many little trades. The scalping strategy we will discuss uses two tools - Donchian Channel and Chikou.

➡️ The Donchian Channel is an indicator that uses the previous 20 candles to create 3 bands - upper band, lower band, and mid-band. It is used to understand the trend. Chikou is used to understand the momentum in the trade and it is the current price of the stock plotted 26 periods behind.

➡️ Combining the 2 strategies, i.e., trend and momentum, a powerful scalping strategy can be developed.

➡️ Scalping requires a trader to have a strict exit strategy because one large loss could eliminate many small gains the trader worked to obtain. A risk-reward ratio of 1:1 is recommended.

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📈 Learn to use these 2 indicators for successful scalping

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None of the above stock ideas are intended as recommendations. Please consult a registered advisor before buying/selling.

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