Donchian Channel (Python)

Strategy based on Donchian Channel Donchian Channel Breakout trades new highs and lows based on the channel range. A close beyond the upper band signals strength, while a drop below the lower band invites shorts. Exits occur when price returns to the midpoint. The channel is calculated from the highest high and lowest low over a lookback window. When price pierces these bounds, the system expects volatility expansion and positions accordingly.

• Entry Criteria: Signals based on Price Action.

• Long/Short: Both directions.

• Exit Criteria: Opposite signal.

• Stops: No.

• Default Values:

• ChannelPeriod = 20

• CandleType = TimeSpan.FromMinutes(5) [*]Filters:

• Category: Trend

• Direction: Both

• Indicators: Price Action

• Stops: No

• Complexity: Basic

• Timeframe: Intraday (5m)

• Seasonality: No

• Neural Networks: No

• Divergence: No

• Risk Level: Medium