In this article you will learn more about the Donchian Channel Indicator for Metatrader, one of the popular channel indicators based on recent highs and lows.
What Is The Donchian Channel In Trading?
The Donchian Channel is an indicator used in trading, originally developed by the trader Richard Donchian.
The Donchian Channel is a channel indicator based on recent highs and lows.
Some traders include this indicator to build their strategies.
It could be useful for breakout, continuation, reversal.
How Do You Calculate The Donchian Channel?
The calculation of the Donchian Channel is very easy.
The indicator includes three lines:
- The top line represent the highest high in the last N candles
- The bottom line is the lowest low in the last N candles
- The middle line is the average point between the top and bottom line
N is the number of candles to examine to find highs and lows.
The chart below shows quite well the lines tracking the highest highs and lowest lows.
What Is Donchian Channel For MT4 And MT5 Used For?
I personally don’t use it as it doesn’t really fit with my trading style and strategies.
Some traders looks at the Donchian Channel as part of their chart study.
In some cases it can be used as continuation, break out or reversal.
Like many other indicators, Donchian Channel is lagging, it is calculated on previous data.
Download Donchian Channel Indicator For MT4 and MT5
You can download Donchian Channel Indicator for MT4 and MT5 for FREE from the following pages.
Please note that the indicator is for the Metatrader Platform and you will need to have the platform already installed to use it.
The utilities are available for Free Download, links below.
The tool is easy to use and allows to do everything through drag and drop on chart.
You can download the following indicators from the respective pages in the links below:
Summary
In this article you learned more about what are Donchian Channel and some of its use.
We shared the Donchian Channel Indicator for MT4 and MT5 and provided download links.
Donchian Channel FAQ
What is the Donchian channel?
Donchian channel is an indicator used in trading created by Richard Donchian, a trader of the 1900s.
The channel is based on recent highs and lows.
How do you calculate the Donchian channel?
The calculation is very easy.
The only parameter needed is N, that is the number of candles to consider.
The indicator has 3 lines where:
- Moddle line is the average point between top and bottom line
- Top line is the highest high of the last N candles
- Bottom line is the lowest low of the last N candles
What is the Donchian Channel Indicator?
The Donchian Channel indicator is a charting tool that automatically calculates and draws the channel on chart
Where can I find the Donchian Channel Indicator in MT4 and MT5?
You can donwload the Donchian Channel indicator for MT4 and MT5 FREE from the following links.
MT4 Donchian Channel Indicator
MT5 Donchian Channel Indicator
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