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