A simple trend-following breakout system, this moving average indicator that plots the highest high and lowest
low over the last period time intervals.
The signals derived from
this system are based on the following basic rules:
When the price closes below the Donchian Channel, sell short and liquidate long positions.
When the price closes above the Donchian Channel, buy long and cover short positions.
To apply a Donchian Channels Indicator
From within a chart, from the Edit menu select Studies.
Choose Donchian Channels and click Add to add the study to the Applied Studies group.
Complete parameters as necessary.
Once the study is defined, you can elect to uncheck/check to remove and add the study to your chart.
