The Donchian indicator is a Meta Trader indicator used to detect the bullish and bearish trends in the market trend. It can also detect the volatility in the price action and market trend. It is also used to detect the breakouts, high trends, low trends, breakdowns, and emerging trends in the forex market.
Donchian Channel indicator:
Donchian Channel indicator is used to detect the high and low number of periods. This indicator is also used to predict the future price movements that help the traders to make their strategies to avoid the risks in the future. It uses a specific formula for its precise calculation. The donchian indicator is evolved by Richard Donchi, An expert trader of technical market. Donchian Channel indicator is also used to detect the price patterns in the indicator chart. It is a swing following indicator.
Donchian Channel indicator has three parts:
- Upper part
- Lower part
- Middle part
The upper part of this indicator is used to detect the highest point in the market trend, the lower point is used to detect the lowest point in the market trend, and the middle part is used to detect the average/middle point of the upper part and lower part of the market trend. It uses a specific formula that helps the traders to make a precise measurement.
CHARACTERISTICS of Donchian Channel indicator: –
The donchian indicator can use all the timeframes and it can also be traded with all the currency pairs. All the time sessions are applicable to this indicator. All types of traders can use this indicator e.g. beginners, advanced traders, and expert traders. In this indicator, distinctive colouration schemes are used. Green, red, blue and black colours are used in this indicator. Blue and Green colours are used to detect the buying strategy and the red colour is used to detect the selling strategy.
The black colour is used to indicate the specific pip in this indicator. It is applicable for both short term traders and long term traders.it also use doji star and hammer candlestick pattern in the indicator chart for simple measurement. It uses the hikkake pattern, morning star candlestick, and white soldiers for the complex market situation. It also detects the support and resistance levels through Fibonacci retracements, pivot point, and bottom levels.
USES DONCHIAN CHANNEL INDICATOR:-
This indicator is good for new traders. You can make profit easily in forex market. This indicator uses three different parts to detect three different levels in the market trend. It uses a specific formula to identify the perfect high and low trends in the market.
• Donchian Channel indicator is used to indicate strength trend in the trade.
• Its calculations are based on moving average price.
• It is used to differentiate between trending and non-trending conditions.
• It helps to identify profitable trade.
• From the rise and fall of lines in the Donchian Channel indicator graph, the traders sense the price climax.
HOW TO INSTALL Donchian Channel indicator:
• First step: – Download the Donchian Channel indicator for Meta Trader 4 plateform.
• Second step: -Copy Donchian Channel indicator for Meta Trader 4. mql4 to your Meta trader Directory/experts/indicators/
• Start or restart your Meta trader 4 Client.
• Select Chart and Timeframe where you want to test your MT4 indicators.
• Search “Custom Indicators” in your Navigator mostly left in your Meta trader 4 Client.
• Right-click on Donchian Channel indicator for Meta Trader 4.mq4.
• Attach to a Chart
• Modify settings or press ok
• In the end, the Donchian Channel indicator for Meta Trader 4.mq4 is available on your Chart.
How to remove Donchian Channel indicator:
• First step: Select the Chart where is the Indicator running in your Meta Trader 4.
• Second Step: Right-click into the chart.
• Third step: Indicators list.
• At the last: Select the indicator and delete it.
These are simple and easy steps that you need to follow before starting trade because it gives you buy and sell zone indicator with almost 90% precision.
Ahead you are going to begin in real account trading you need to trade at the minimum for one month as a demo in any MT4 or MT5 brokers. It awards you more potential for getting quality payback in long or short term trading across also moving average.