Donchian Channel Reversal Strategy (C#). StockSharp

Author: StockSharp
N: 1496
v5.0.1 (7/30/2025)
Downloads: 65

Donchian Channels mark recent highs and lows over a chosen period. Prices that pierce those boundaries and then reverse can signal exhaustion. This strategy watches for closes back inside the channel after a brief breakout.
If the previous close was below the lower band and the current close moves back above it, a long trade is taken. Conversely, if the prior close was above the upper band and price falls back inside, a short is opened. A percentage stop manages risk in both cases.
By trading only after a failed breakout this approach attempts to capture false moves that quickly retrace.

  • Entry Criteria: Price closes back inside Donchian Channel after breaching upper or lower band.
  • Long/Short: Both.
  • Exit Criteria: Stop-loss.
  • Stops: Yes, percentage based.
  • Default Values:

    • Period = 20
    • StopLoss = 2%
    • CandleType = 15 minute

  • Filters:

    • Category: Reversal
    • Direction: Both
    • Indicators: Donchian Channel
    • Stops: Yes
    • Complexity: Basic
    • Timeframe: Intraday
    • Seasonality: No
    • Neural networks: No
    • Divergence: No
    • Risk level: Medium