Our custom developed Forex Donchian Channel Buy Sell Indicator. Donchian Channels are three lines generated by moving average calculations that comprise an indicator formed by upper and lower bands around a mid-range or median band. The upper band marks the highest price of a security over N periods while the lower band marks the lowest price of a security over N periods. The area between the upper and lower bands represents the Donchian Channel. Career futures trader Richard Donchian developed the indicator in the mid-twentieth century to help him identify trends. He would later be nicknamed “The Father of Trend Following”.
KEY TAKEAWAYS
- The indicator seeks to identify bullish and bearish extremes that favor reversals as well as breakouts, breakdowns and emerging trends, higher and lower.
- The middle band simply computes the average between the highest high over N periods and lowest low over N periods, identifying a median or mean reversion price.
Feel free to use this indicator together with our other technical indicators (oscillators, momentum) or price action methods to maximize your trading accuracy.
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Forex Donchian Channel Buy Sell Indicator
The EUR/GBP 15 minute chart below displays the Forex Donchian Channel Buy Sell Indicator in action.
Installation
Copy and paste the Forex Donchian Channel Buy Sell Indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)
How to remove Indicator from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete