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.

Trading Rules

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.

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Download the Donchian Bands Metatrader 4 indicator.

EUR/USD 1 Hour Chart Example

donchian-bands-metatrader4

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