OPEN-SOURCE SCRIPT
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!
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.