In this post I will talk about Donchian Channel Strategy. The donchian channel forex indicator are not generally smoothed, so donchian channel react immediately to changes in the lowest low and the highest high. It means that market price will rarely be outside a channel, even during a breakout of a range, because channel donchian will trade to the new low or new high on the next candlestick.
The donchian channel is traded to determine a continuation of a market trend or a breakout of a market price range. When market prices are traded in a donchian channel forex indicator a possible trend continuation, but if the market price break outside the channel , a trend reversal might occur.
You can download donchian indicator in this Donchian Channel Indicator For Mt4 article.
The chart above displays a range followed by a breakout, but the market prices are traded within the donchian channel forex indicator.
