01 · Indicator · Donchian Channel
What is Donchian Channel?
Created by Richard Donchian, this channel plots the highest high and lowest low of the last N periods, with their midpoint.
It is famous as the basis of the 'Turtle Traders' in the 1980s.
02 · Indicator · Donchian Channel
The calculation
Upper band = N-period high. Lower band = N-period low. Middle = their average.
Classic setting: 20 periods.
03 · Indicator · Donchian Channel
Reading the signals
A break of the upper band marks a new N-period high, the basis of breakout strategies.
Channel width reflects volatility; a narrow channel often precedes a breakout.
04 · Indicator · Donchian Channel
Settings and combinations
The period is adjustable in the Volatility group. It pairs well with: Keltner Channel, ATR (Average True Range), Pivot Points.
To put the signal in context, check the Heatmap, the news or ask the AI Compass. No indicator is investment advice.
◆ Step by step
Get started in 4 steps
- 01
Open a chart
Search for an asset on the Charts page and pick a timeframe.
- 02
Add the indicator
Open Indicators, Volatility group, then click Donchian Channel.
- 03
Adjust the settings
Change the parameters in the indicator sheet to suit your horizon.
- 04
Confirm the signal
Cross-check with the main trend and another indicator before concluding.
◆ FAQ
Your questions, clear answers.
01What is Donchian for?
Mainly spotting breaks of highs or lows.
02Which period?
20 for entries, 10 for exits in the Turtle method.
03Does it give false signals?
Yes in ranges; filter with the main trend.