The Donchian Channel is a very simple trend-following indicator developed by Richard Donchian. It plots the highest high and lowest low over the last period time intervals.
When the market is trending, signals can be derived from this indicator based on the following basic rules:
1. When price closes above the Donchian Channel, buy long and cover short positions.
2. When price closes below the Donchian Channel, sell short and liquidate long positions.
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Monday, October 29, 2007
Donchian Channel
Posted by Forex at 10:10 PM
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