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The Donchian channel is an indicator that takes a series of user-defined periods and calculates the upper and lower bands. Draw two lines on the graph according to the Donchian channel formula. This straightforward formula is based on:
The top line is the highest price for the last periods n The bottom line is the lowest price for the last periods n
Trend systems follow periods when support and resistance levels are broken. in this case when the price breaks the upper line or the lower line of the channel
This indicator is used in all types of markets such as stocks, futures, forex, cryptos, additionally it can be used in different periods of time: hours, daily, weekly, etc.
