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Donchian Channels (DC)

Donchian Channel Width The Donchian Channel was developed by Richard Donchian and it could be compared to the Bollinger Bands. When it comes to volatility analysis, the Donchian Channel Width was created in the same way as the Bollinger Bandwidth technical indicator was. As was mentioned above the Donchian Channel Width is used in technical analysis to measure volatility. Volatility is one of the most important parameters in technical analysis. A price trend is not just about a price change. It is also about volume traded during this price change and volatility of a this price change. When a technical analyst focuses his/her attention solely on price analysis by ignoring volume and volatility, he/she only sees a part of a complete picture only. This could lead to a situation when a trader may miss something and lose money. Lets take a look at a simple example how volatility may help a trader: Most of the price based technical indicators are lagging indicators. When price moves on low volatility, it takes time for a price trend to change its direction and it could be ok to have some lag in an indicator. When price moves on high volatility, a price trend changes its direction faster and stronger. An indicator's lag acceptable under low volatility could be financially suicidal now - Buy/Sell signals could be generated when it is already too late. Another use of volatility - very popular one - it is to adapt a stop loss strategy to it: Smaller stop-loss recommended in low volatility periods. If it is not done, a stop-loss could be generated when it is too late. Bigger stop-loss recommended in high volatility periods. If it is not done, a stop-loss could be triggered too often and you may miss good trades.
Pine Script™ Indikator
von HPotter
RSI ZonesThis is a combination of a couple ideas I saw on here. The result is from three configurable EMA smoothed RSI overbought/oversold zones. The default is set to Donchian Channel mode where the highs/lows of the RSI's are plotted. An optional basis line derived from the slowest RSI is also included. Toggling this mode off gives you different results. You'll want to play with different lengths for your own preferences and to see what works best for you. Being able to see price bounce between these zones should hopefully give you some ideas on how you could potentially use this. Credit to LazyBear for the initial idea.
Pine Script™ Indikator
von imsharper
1
Donchian Channel Trend Intensity [DW]This is an experimental study designed to analyze trend intensity using two Donchian Channels. The DCTI curve is calculated by comparing the differences between Donchian highs and lows over a major an minor period, and expressing them as a positive and negative percentage. The curve is then smoothed with an exponential moving average to provide a signal line. Custom bar colors included with two coloring methods to choose from.
Pine Script™ Indikator
von DonovanWall
8
Donchian Fibonacci Trading ToolDONCHIAN FIBONACCI TRADING TOOL This indicator is based on a Donchian Channel with Fibonacci zones I published before. Features are added which enable trading decisions, it suggests when to open either a long or a short position, it provides suggestions for a stop loss level and suggests a take profit level, the calculation of the take profit suggestion can be altered in the inputs. The user should devise a trading strategy on his own, several strategies are possible, but as a Donchian Channel is used, these must come down to refinements in the classical Turtle Trading system. NO LAGGING Donchian Channels have no lagging, this tool being based on these, has none as well. The only added feature with a little lagging is the Hull MA, all other features work at once and report right now the historical context of the present bar or candle even while it is developping. ANY TIME FRAME This indicator works in any time frame. However, when the user sets the prediction calculation to percent, then in small intraday time frames the result will be relatively huge. FALSE SIGNALS Fibonacci retracement levels are based on inclinations which exist in nature and which also exist in the financial markets. The expectations, labeled ‘DFT: expect’, based on these levels, are usually correct. The take profit levels otoh, labeled ‘DFT: predict’, are usually incorrect. The trader should take care and needs proper ‘gut feeling’ in using these FEATURES TRIGGERED BY THE MARKET ENTERING OR LEAVING ZONES 1. REACTIVE COLORS The zone in which the close is, is brighter coloured. 2. ENTRY AND EXIT MARKERS NEAR UP- OR DOWN TREND ZONES If the close enters the Up Trend or Down Trend zone, coming from another zone, a triangle is placed just outside the channel border. If it leaves the zone, an X cross is placed. 3. MARKET SITUATION EXPECTATION LEVELS (OFFSET) The indicator can report four market situations which may be valid for the last candle: 3.1. Market is in up trend: a blue dot is placed in an offset (=future) position of the High Border, expect levels are placed offset of High Border and the Highest Fibonacci line, 3.2. Market is in down trend: a red dot is placed offset the Low Border, also expect levels offset the Low Border and the Lowest Fibonacci line. 3.3. Market is high ranging, i.e. last break out was at High Border and market is not in up- or down trend. A green dot is placed offset the Center High Fibonacci line and expect levels offset the Highest and Center Low Fibonacci lines. 3.4. Market is low ranging, i.e. last break out was at Low Border and market is not in up- or down trend. A brown dot is placed offset the Center Low Fibonacci line and expect levels offset the Center High and Lowest Fibonacci lines. FEATURES TRIGGERED BY AN ATTEMPT TO BREAK OUT OF THE CHANNEL BORDERS 4. SWING LINE When the High Border is touched, the Swing Line changes its level to the Highest Fibonacci line and changes its color to blue. When the Low Border is touched, the Swing Line changes its level to the Lowest Fibonacci line and changes its color to red. This way you can see whether the general trend is up- or down and also if and when the line has been crossed. 5. DIAMOND MARKERS (OFFSET) These markers flash when the last bar or candle or the one before that, touches a channel border, the offset is equal to the expect levels. 6. PREDICTION LEVEL (OFFSET) The prediction level flashes in the same situation as the diamond marker. The default level is 1 Average True Range. Most are in fact false signals. One can switch the prediction level off by setting the added amount to 0, then only the Diamond Markers will flash OTHER FEATURES 7. HULL MOVING AVERAGE Its direction provides an indication of the price dynamics. 8. SUPPRESSION OF PLOTTING SOME LAST VALUES Quite a few lines stop before the last bar or candle. This way the last candle seem free loating and the chart reports only the values the user needs. Enjoy, Eykpunter.
Pine Script™ Indikator
von eykpunter
24
B3 Donchian CloudsThis is the Donchian Channel expressed with a percentage cloud. Default 12.5% of the range will be filled at each edge, this helps to show reversal possibilities as price returns to the area between the clouds. This offers a usage to essentially fade the turtle trader system. That system is loosely based on the playing of the breakouts of the the channel... as you can see the that last turtle trade long in YM1! was and is off the charts awesome. I will look for the fall out of the cloud to short the market.
Pine Script™ Indikator
von HammondB3
[STRATEGY][UL]Price Divergence Strategy v1.0Created by Request: This is a trend trading strategy that uses Price Divergence detection signals that are confirmed by the "Murrey's Math Oscillator" (Donchanin Channel based). Strategy Code Based on: Price Divergence Detector V2 by RicardoSantos UCS_Murrey's Math Oscillator by Ucsgears Strategy Risk Management Based on: Strategy Code Example by JayRogers Information on Divergence Trading: - www.babypips.com *** USE AT YOUR OWN RISK ***
Pine Script™ Strategie
von JustUncleL
40
Adaptive Donchian ChannelThis indicator adds a level of adaptivity to the simple Donchian Channel by adjusting the sensitivity (lookback periods) of the channel's upper and lower bounds based on the amount of time that has elapsed since the price has hit/expanded the channel boundaries. Comparing the results of this indicator to the standard Donchian Channel, the readier level of responsiveness may prove self-evident. METHODOLOGY: Specifically, the more recently the channel was expanded in one direction, the longer the lookback period grows in that direction. Conversely, if the channel has not been expanded in a given direction, the lookback period will contract so as to allow for a tighter channel. For example, let the initial lookback period be 20 bars and let the factor argument be 0.1 (or 2 bars to start, as 20*0.1 = 2). Now say the current bar sets a new 20-period high. Then the lookback period for the upper bound is expanded by 2 bars to 22, and the lookback period for the lower bound is contracted by 2 bars to 18, thereby making it simultaneously harder to set new highs and easier to set new lows (and vice versa for hitting new lows). If neither a new high nor a new low is formed, both periods contract by the given factor.
Pine Script™ Indikator
von JacobAmos
5