Top Technical Indicators – How To Use Donchian Channels

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Learn the basics of the Donchian Channel indicator in under 5 minutes!
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Developed by Richard Donchian, this trend following indicator uses price channels that are determined by the highest high and lowest low of the previous period, normally 20 days. The Donchian Channel indicator can be used to help determine entry and exit points, visualize market volatility, and help identify breakouts and trend reversals.

Donchian Channels can be used on intraday, daily, weekly, and monthly charts and traders can adjust the period depending on their goals. Shorter periods will produce tighter channels, while longer periods will produce wider channels.

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How To Use Donchian Channels


  1. lovenow

    March 26, 2016 at 8:32 pm

    A completely inconclusive analysis. One could just as easily arrive at the opposite signals looking at those diagrams.

  2. orkayen

    March 26, 2016 at 9:20 pm

    Very clear and brief explanation on DC. On your bearish portion of the explanation one of the candles does go past the lower channel at the beginning just below the buy signal and the price started moving up instead of moving down. Based on the strategy, one would sell short or buy a put there. Could you explain how to react to this situation.

  3. Prometheus

    March 26, 2016 at 9:38 pm

    I clicked this wanting to learn about donchian channels and did. Apparently the downvotes are from this being run as an ad. Anyways, video title is not misleading, this is a simple concise explanation.

  4. wolfiksk123

    March 26, 2016 at 10:00 pm

    If you want some attention, don't put video like this to adwords. Boring, long, annoying.

  5. c21dickcracker

    March 26, 2016 at 10:51 pm

    Seriously. what the hell is this? Stock market? You're teaching kids stocks? wtf?!

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