Classic Donchian(Price) Channels, I added alerts for entries and re-entries and labels for upper and lower bands of the channel.
#Investopedia "What are Donchian Channels? Donchian Channels are three lines generated by moving average calculations that comprise an indicator formed by upper and lower bands around a mid-range or median band. The upper band marks the highest price of a security over N periods while the lower band marks the lowest price of a security over N periods. The area between the upper and lower bands represents the Donchian Channel.
The indicator seeks to identify bullish and bearish extremes that favor reversals as well as breakouts, breakdowns and emerging trends, higher and lower.
The Formula for Donchian Channels Is: UC = Highest High in Last N Periods Middle Channel=((UC−LC)/2) LC = Lowest Low in Last N periods where: UC = Upper channel N = Number of minutes, hours, days, weeks, months... Period = Minutes, hours, days, weeks, months... LC=Lower channel
What Do Donchian Channels Tell You? Donchian Channels identify comparative relationships between current price and trading ranges over predetermined periods. Three values build a visual map of price over time, similar to Bollinger Bands, indicating the extent of bullishness and bearishness for the chosen period. The top line identifies the extent of bullish energy, highlighting the highest price achieved for the period through the bull-bear conflict. The center line identifies the median or mean reversion price for the period, highlighting the middle ground achieved for the period through the bull-bear conflict. The bottom line identifies the extent of bearish energy, highlighting the lowest price achieved for the period through the bull-bear conflict.
Limitations of Using Donchian Channels Markets move according to many cycles of activity. An arbitrary or commonly used N period value for Donchian Channels may not reflect current market conditions, generating false signals that can undermine trading and investment performance "
fucking best DC ever!!
you can set the upper channel and lower channel seperately. which is make donchian more versatile than ever!!
miss the boat but didnt wont get burned by bulltrap?? setting the lower channel higher than upper channel!!
fear with the buying top and looking for reversal?? setting the lower channel lower than upper channel!!
this indicator best combined with ichimoku
man you really did god job :))
you can set the upper channel and lower channel seperately. which is make donchian more versatile than ever!!
miss the boat but didnt wont get burned by bulltrap?? setting the lower channel higher than upper channel!!
fear with the buying top and looking for reversal?? setting the lower channel lower than upper channel!!
this indicator best combined with ichimoku
man you really did god job :))