D Ch Signal AM 外汇EA

The presented indicator gives signals about the price leaving the Donchian channel, as well as about the price returning to the channel.

Donchian channel – a technical indicator developed by Richard Donchian, is a variation of the trading interval breakout rule. It is built by taking the highest (high from High) and lowest (low from Low) prices for the previous n periods, followed by marking the area between them on the chart. Donchian recommended using his indicator for daily timeframes with an interval of n=20, other authors suggest experimenting with the interval, increasing it.

In trading strategies, the indicator is used as follows: the instrument is bought (long positions are opened) when the current high of its price exceeds the maximum value of the channel and sold (short positions are opened) when the current low falls below the minimum value of the channel. The indicator is useful for monitoring market price volatility. If the price is stable, then the Donchian channel will be relatively narrow, but if the price fluctuates a lot, then the channel will be wider.