A moving average indicator developed by Richard Donchian. It plots the highest high price and lowest low price of an issue over a given interval.
| Donchian Channels | A Donchian Channel is an indicator formed by upper and lower bands around the price bars. The upper band marks the highest price of an issue for n periods while the lower band marks the lowest price for n periods. The area between the upper and lower bands represents the Donchian Channel. Richard Donchian, a career futures trader, developed the indicator in the mid twentieth century to help him identify trends.
| Breaking it Down: | In this example, the Donchian Channel is the tan shaded area bounded by the upper green line and the lower... | Read More » | Related to "Donchian Channels" | | Interval Fund | Interval funds are illiquid and offer to repurchase shares from investors from time to time but do not require investors to participate. | Read More » | | Adjustment Interval | An adjustment interval or period refers to the amount of time between interest rate changes to an adjustable rate mortgage (ARM). | Read More » | | Signal Line | Signal lines are used in technical indicators, especially oscillators, to generate buy and sell signals or suggest a change in a trend. | Read More » | | Horizontal Channel | Horizontal channels are trend lines that connect variable pivot highs and lows to show the price contained between resistance and support. | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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