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Donchian Channel (Simple & Clear Version)
Donchian Channel Indicator - Simple & Clear
OVERVIEW
The Donchian Channel is a powerful trend-following indicator that helps identify breakouts and potential trading opportunities. It consists of three lines based on the highest high and lowest low over a specified period.
HOW IT WORKS
• Upper Band (Green): The highest price over the last N periods
• Lower Band (Red): The lowest price over the last N periods
• Middle Line (Blue): The average of upper and lower bands
TRADING SIGNALS
📈 Bullish Breakout: When price breaks above the upper band (green triangle)
📉 Bearish Breakout: When price breaks below the lower band (red triangle)
SETTINGS
• Period Length: Default is 20 (adjustable based on your trading timeframe)
• Show Middle Line: Toggle on/off to display the middle line
HOW TO USE
1. Upward breakouts suggest potential long entries
2. Downward breakouts suggest potential short entries
3. Price touching upper band = strong uptrend
4. Price touching lower band = strong downtrend
5. Use with other indicators for confirmation
BEST PRACTICES
✓ Works well in trending markets
✓ Combine with volume analysis for better accuracy
✓ Consider using stop-loss below/above the opposite band
✓ Adjust period length: shorter for day trading (10-14), longer for swing trading (20-50)
Perfect for traders looking for a clean, easy-to-understand breakout indicator!
OVERVIEW
The Donchian Channel is a powerful trend-following indicator that helps identify breakouts and potential trading opportunities. It consists of three lines based on the highest high and lowest low over a specified period.
HOW IT WORKS
• Upper Band (Green): The highest price over the last N periods
• Lower Band (Red): The lowest price over the last N periods
• Middle Line (Blue): The average of upper and lower bands
TRADING SIGNALS
📈 Bullish Breakout: When price breaks above the upper band (green triangle)
📉 Bearish Breakout: When price breaks below the lower band (red triangle)
SETTINGS
• Period Length: Default is 20 (adjustable based on your trading timeframe)
• Show Middle Line: Toggle on/off to display the middle line
HOW TO USE
1. Upward breakouts suggest potential long entries
2. Downward breakouts suggest potential short entries
3. Price touching upper band = strong uptrend
4. Price touching lower band = strong downtrend
5. Use with other indicators for confirmation
BEST PRACTICES
✓ Works well in trending markets
✓ Combine with volume analysis for better accuracy
✓ Consider using stop-loss below/above the opposite band
✓ Adjust period length: shorter for day trading (10-14), longer for swing trading (20-50)
Perfect for traders looking for a clean, easy-to-understand breakout indicator!
Skrip sumber terbuka
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Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Skrip sumber terbuka
Dalam semangat TradingView sebenar, pencipta skrip ini telah menjadikannya sumber terbuka, jadi pedagang boleh menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupuan anda boleh menggunakan secara percuma, ingat bahawa penerbitan semula kod ini tertakluk kepada Peraturan Dalaman.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.