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.
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.
Example: GBP/USD Daily Chart
Type: volatility indicator
Currency pairs: any
Platform: Metatrader 5
Customizable settings: period of averaging, extreme points, margins, shift bars