Donchian Channels Strength

2024年1月2日

TL;DR - A different approach calculating strength based on Donchain channels

My approach calculating strength by using the difference between price and donchain average. It is possible to use the highest/lowest value of a given source (like close) or to use the highest high/lowest low (by using the option 'include wicks') for the strength calculation

I added multiple moving averages which can be used in the calculations incl. SMMA (RMA) which is used in RSI calculation and works best for me.

Usage is similar to RSI: DC Strength oscillates between 0 and 100. Low values (<20) indicate a bearish situation while high values (>80) indicate bullish ones. Center line (50) crossings can also indicate a possible trend change.

2024年1月19日

版本注释

• Added Alerts -> crossover/crossunder 50, entered/left overbought zone, entered/left oversold zone
  
• Overbought and oversold zones can be set via the settings menu
  

2月2日

版本注释

Update:
- Converted to Pine Script v6
- Added 'Percent' display type: This simply outputs the current price (within the Donchian channel) as percent value
- Added 'Bull & Bear' display type: Provides a visual relation of the highest and lowest values of the channel