Donchian Volume uses Donchian channel breakouts confirmed by rising volume to initiate trades.
A move outside the channel on strong volume suggests the start of a new trend.
The strategy enters in the direction of the breakout and exits when price closes back inside the channel or volume wanes.
Stops are set a short distance inside the channel to protect against false moves.
- Entry Criteria: indicator signal
- Long/Short: Both
- Exit Criteria: stop-loss or opposite signal
- Stops: Yes, percent based
- Default Values:
- CandleType = 15 minute
- StopLoss = 2%
- Filters:
- Category: Breakout
- Direction: Both
- Indicators: Donchian Channel, Volume
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Intraday
- Seasonality: No
- Neural networks: No
- Divergence: No
- Risk level: Medium