FIGURE 14.5 Renko Blocks Showing Initiation of Bear Sentiment. Source: www.tradesignal.com.
will clarify more precisely than candlesticks when to get in and out of a scalp. Figure 14.6 shows the situation facing the euro-U.S. dollar (EURUSD). There was a parabolic move up, indicating a potential reversal. The question was when to get in and out for a scalp.
Let's see how a renko scenario would have worked. Mr. Ashkan Balour is a professional forex scalper trader who focuses on capturing moves like a hawk looking for prey. It takes experience in pattern recognition, but Ash is an example that forex trading can become a profitable endeavor. Figure 14.7 is an example of one trade he did; his own description of it follows. Ash is quite a good trader and was able to pick off 15 pips without 1-minute candles. Compare his candlestick view with renko. The newcomer to forex scalping should use renko to help out. (See Figure 14.8.)
I just finished this trade. The dollar has been weak all day. It came down from the top of about 1.9673. It did one wave down to around 1.9645, then started to form a pendant and went lower. I was looking to go long the whole time. I waited till it did a three-wave sequence down under the pendant. On the third wave, it entered an area of support in the 1.9630 area. I read a comment that there were buyers here around 1.9630, which is not my reason to trade this area but gives you some confidence. On the first up candle I was long, 1.9636; I waited until the first red candle and bagged 15 pips easily. Most trades aren't this quick and easy.
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