Friday, May 31, 2019

What are 'Donchian Channels'?

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. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌
Logo | Term of the Day
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"
Related Definitions
Sign Up
CONNECT WITH INVESTOPEDIA
Email sent to: mondemand.forex@blogger.com
To update your newsletter preferences or unsubscribe, click here.
114 West 41st St, floor 8 New York NY 10036
© 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy
                                                           

No comments:

Post a Comment