Donchian Channel (Simple & Clear Version)

Donchian Channel Indicator - Simple & Clear

OVERVIEW
The Donchian Channel is a powerful trend-following indicator that helps identify breakouts and potential trading opportunities. It consists of three lines based on the highest high and lowest low over a specified period.

HOW IT WORKS
• Upper Band (Green): The highest price over the last N periods
• Lower Band (Red): The lowest price over the last N periods
• Middle Line (Blue): The average of upper and lower bands

TRADING SIGNALS
📈 Bullish Breakout: When price breaks above the upper band (green triangle)
📉 Bearish Breakout: When price breaks below the lower band (red triangle)

SETTINGS
• Period Length: Default is 20 (adjustable based on your trading timeframe)
• Show Middle Line: Toggle on/off to display the middle line

HOW TO USE
1. Upward breakouts suggest potential long entries
2. Downward breakouts suggest potential short entries
3. Price touching upper band = strong uptrend
4. Price touching lower band = strong downtrend
5. Use with other indicators for confirmation

BEST PRACTICES
✓ Works well in trending markets
✓ Combine with volume analysis for better accuracy
✓ Consider using stop-loss below/above the opposite band
✓ Adjust period length: shorter for day trading (10-14), longer for swing trading (20-50)

Perfect for traders looking for a clean, easy-to-understand breakout indicator!