The Donchian Channel indicator plots both upper and lower recent price boundaries. The user specifies the number of time periods which the indicator uses to look back. The indicator then takes the highest highs and lowest lows price levels from the Specified time period, and plots those levels as lines on the chart.
Traders look to the Donchian Channels for breakouts passing through and going above the recent high or passing through and going below the recent low. These breakouts could signal the start of a new trend. Additionally, traders who trade in the direction of the new trend often use the Donchian Channels to calculate where they will place their stop loss.
The following are inputs available in the application:
Periods – Number of periods used to calculate the Donchian Channel
The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results. There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.
This indicator is only compatible with FXCM MetaTrader 4 software. It does not operate on MetaTrader 4 software provided by any other brokerage. Additionally, an FXCM account is required (including free FXCM demo accounts).