Donchian Bands Metatrader 4 Indicator
Donchian Bands calculate support and resistance levels based on high/low price of x periods. They are a great tool for trading breakouts in the forex market.
Donchian Bands use a very simple formula to draw the upper and lower band.
Upper Donchian Band: High price of x periods.
Lower Donchian Band: Low price of x periods.
BUY: Price breaks and closes above the 20-period upper Donchian Band.
SELL: Price breaks and closes below the 20-period lower Donchian Band.
See illustration below for clarification of the entry rules.
EUR/USD 1 Hour Chart Example