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