Indicators & Analysis
Intermediate
Donchian Channel
A channel formed by the highest high and lowest low of the last N periods — used for breakout trading.
Definition
Donchian Channels (Richard Donchian, 1950s) plot two simple lines: the highest high and lowest low of the last N bars. A breakout above/below either line is the classic Turtle Traders entry.
Example
Turtle System: enter long on a break above the 20-day high; exit on a break below the 10-day low.