Donchian Channels with Limits and Shadows | by Octopu$

🌊 Donchian Channels with Middle Line, Limits and Shadows | by Octopu$

Donchian Channels are three lines generated by Moving Average calculations.
These lines formed by upper and lower bands around a midrange or median band.
The Upper Band marks the Highest price of a security over X periods of time.
While the Lower Band marks the Lowest price over the same period.

Now, the Limit bands are the High and Low prices over a Y period of time (different than X)
The difference about using Limits with the Bands on Donchian Channels is the time length:
By using different time comparisons (X and Y) you are able to identify previous Highs and Lows.

This is very useful for Support and Resistance levels regarding the Price Action
As well as Pivot Points, considering the possibility off Breakouts or Bounces.
Usually - as a General Rule - the Price tends to navigate in-between these channels

That's where DC Channels + Limits w/ Shadows come into play!

Highs and Lows serve as Supply and Demand Zones as well.
The Middle Line can be used as a spot for Reversal/Continuation.
All of this also makes the Donchian Channels a great tool for Trend Identification.

The combination of your understanding and analysis as well as other Indicators and Factors as Confluence, you can improve your Charting Analysis.

https://www.tradingview.com/chart/QWLDthEW/

SPY

ANY Ticker. ANY Timeframe.
( SPY 5m as an example only.)

Features:

• Upper Channel
• Lower Channel
• Limit High
• Limit Low
• Middle Line
• Shadow

Options:

• Color Picker
• Line Styling
• Toggle On/Off
• Length Customization
• Background Transparency

Notes:

v1.0
Indicator release.

Changes and updates can come in the future for additional functionalities or per requests. Follow and Stay Tuned!
Did you like it? Please Support and Shoot me a message! I'd appreciate if you dropped by to say thanks! Thank you.

- Octopu$

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