Donchian Channel Volatility Indicator For MT5

The Donchian Channel volatility indicator for MT5 draws a channel, the upper channel represents the 20 day high price and the lower channel the 20 day low price.

A trader needs to determine the overall trend first then uses the Donchian channels to trade a breakout in the direction of the overall trend towards higher highs or lower lows.

A stop-loss will be placed slightly below the center line for long positions, or slightly above the center line for short positions.

Trading Rules

Buy signal: in an uptrend, initiate buy orders one pip above the upper Donchian Channel.

Sell signal: in a downtrend, initiate sell orders one pip below the lower Donchian Channel.

Download Link

Download the donchian_channels.mq5 indicator.

Example: GBP/USD Daily Chart

Donchian-Channels-metatrader5-indicator

Characteristics 

Type: volatility indicator

Currency pairs: any

Timeframe: any

Platform: Metatrader 5

Customizable settings: period of averaging, extreme points, margins, shift bars

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