Overview
The Devils Donchian Channel is an improved version of the standard donchian channel.
The Donchian channel is an indicator used in market trading developed by Richard Donchian. It is formed by taking the highest high and the lowest low of the last n periods. The area between the high and the low is the channel for the period chosen. It is commonly available on most trading platforms.
Donchian channels are mainly used to identify the breakout of a stock or any traded entity enabling traders to take either long or short positions. Traders can take a long position, if the stock is trading higher than the Donchian channels “n” period and book their profits/short the stock if it is trading below the DC channels “n” period.
Features
- ATR or Standard deviation upper/lower bands
- Trend coloring
- Paintbars
- Alerts
- Bloodhound / Strategy builder supported
- Any timeframe
- Any market
ATR or Standard Deviation upper / lower bands
The devils donchian channel can show an ATR or standard deviation based on upper and lower band. You can change the ATR period, multiplier, or standard deviation multiplier. By using the ATR / standard deviation bands you have a good indication if price is going to reverse or continue. As long as the price stays within the bands the up- or downtrend is still intact and likely to continue.
Paint Bars
The devils donchian channel can paint the bars in the color of the trend
Trend coloring
Both upper and lower lines of the donchian channels have a trend based coloring. A green line means an uptrend and a red line a downtrend
Alerts
The indicator can give an alert when the trend changes.
