Thursday, November 17, 2016

Donchian Canal

Donchian Canal


Channel Donchian constructed by taking the highest (maximum of High) and lowest (minimum of Low) rates for the previous period, followed by the designation of the region between them on a chart.


Donchian recommend using your indicator for the daily timeframe with an interval period = 20, other authors suggest experimenting with an interval increasing it.


trading strategy


The tool is purchased (a long position), when the current maximum of its price exceeds the maximum value of the channel, and sell (go short) when the current drops below the minimum of the minimum channel values.


Additional ways to use


Donchian channel - a useful indicator for monitoring the volatility of market prices. If the price is stable, the Donchian channel will be relatively narrow. If the price varies greatly, the Donchian channel will be wider.


Donchian Canal

Related posts




  • NewBbandsMT4


    NewBbandsMT4 Probably every trader known indicator Bollinger Bands (Bollinger Bands). This indicator is similar to moving average envelopes, but based on...




  • Multicurrency Cross Oscillator


    Multicurrency Cross Oscillator Description Color universal indicator / oscillator crossing moving averages. It is possible to raise or lower coloring...




  • RSI Global


    RSI Global Description Universal indicator RSI together with the sliding means on its base. Depending upon the need or desire moving averages may be...




Next posts


No comments:

Post a Comment

Gold futures were down during

Gold futures were down during the Asian session Tuesday morning gold futures were down during trading on Asian markets - division New York ...