Donchian Channels

Donchian Channels are a trend following indicator used to plot the highest highs and lowest lows in price over a given period.

The idea is that the indicator offers a view of volatility in price - with the Donchian Channel being wider in periods of high volatility.

The indicator can also guide entry and exit positions because it offers a visual on when a price breaks out above the upper band of the channel and breaks down below the lower band of the channel.

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The Donchian Channel settings use the previous 20 days for both the high and low prices. These parameters can be changed in the Donchian Channels settings modal.

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