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Indicator help file Donchian Channel
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To be taken into account
Technical reference
The Donchian channel is simply the highest price from the current bar starting up a determined number of bars backwards, the same calculation applies for the lowest price (the period is not necessarily the same ).

It is the base of the well known system Turtle. The idea of this strategy to enter the market at the channel´s value ,in a way to take position outside the responsibility zone , because the prices upon the channel are supposed to be created by the recent market consolidation.

As most of the responsibility evasion systems they sacrifice a better entry point for a smaller risk .

Data input
Line 1 Represents the channel´s higher value.
Line 2 Represents the channel´s average value if the option is activated.
Line 3 Represents the channel´s lower value
Parameters
UpPeriod Determines the amount of bars backwards to be taken in to account to establish the higher prices. By default we will use a 20 bars period.
Range: Full values
DownPeriod Determines the number of bars backwards to be taken in to account to establish the lower price. By default we will use a 10 bars period.
Range: Full values
PriceUp Establish the bar price (open , high, low, close) to be taken in to account for the channel calculation, by default we will study the highs.
Range: Price type
Price Down Establish the bar price (open , high, low, close) to be taken in to account for the channel calculation, by default we will study the lows.
Range: Type of price
ShowAverage Enables or disables the visualization of the channel average. This value is the average value between the higher and the lower channel´s price.
Range: 0 or 1
Conclusion
The Donchian channel follows other channel indicators philosophy, marking the high responsibility zones , and changing while new trends appear.
Chart example
Bibliography
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