Donchian Trend Ribbon (Gradient)

8. Dez. 2024

Donchian Trend Ribbon (Gradient) Indicator

The Donchian Trend Ribbon (Gradient) uses Donchian Channels to visualize trend direction, strength, and market phases. Columns with varying colors and intensity help traders quickly assess trends.

Key Components:
Green Columns (Bullish):

• Appear when price is above the upper Donchian Channel boundary.
  
• Bright green in the top zone (25-50): Strong bullish trend.
  
• Darker green in the lower zone (0-25): Weak/moderate bullish trend.
  
• A full-height bright green column indicates a very strong upward move.
  

Red Columns (Bearish):

• Appear when price is below the lower Donchian Channel boundary.
  
• Bright red in the top zone (25-50): Strong bearish trend.
  
• Darker red in the lower zone (0-25): Weak/moderate bearish trend.
  
• A full-height bright red column indicates a very strong downward move.
  

Black Columns (Neutral):

• Indicate no trend or market consolidation.
  
• Signal to wait for trend emergence.
  

Expanding Steps:

• Steps expanding downward from the upper edge (50) suggest diminishing momentum.
  
• Steps expanding upward from the lower edge (0) indicate growing trend strength.
  

Methods of Use:

• Identify Trends: Green (buy) or red (sell) columns in the top zone (25-50) signal strong trends.
  
• Assess Strength: Bright colors = strong trends, darker colors = weaker trends. Full-height bright columns indicate very strong moves.
  
• Neutral Phases: Black columns suggest waiting for a trend.
  

Example Strategy:

1. Buy when green columns appear in the 25-50 range with bright intensity.
   
2. Sell when red columns appear in the 25-50 range with bright intensity.
   
3. Exit positions if columns turn black or darker-colored.