Donchian Channels are moving average indicators developed by Richard Donchian. They plot the highest high price and lowest low price of a security over a given time period.
 | | Donchian Channels | | Donchian Channels are three lines generated by moving average calculations that comprise an indicator formed by upper and lower bands around a mid-range or median band. The upper band marks the highest price of a security over N periods while the lower band marks the lowest price of a security over N periods. The area between the upper and lower bands represents the Donchian Channel. Career futures trader Richard Donchian developed the indicator in the mid-twentieth century to help him identify trends. He would later be nicknamed "The Father of Trend Following". | | Read More » | | Related to "Donchian Channels" | | | | Trendline | | A trendline is a charting tool used to illustrate the prevailing direction of price. Trendlines are created by connecting highs or lows to represent support and resistance. | | Read More » | | | Technical Analyst | | A technical analyst, or technician, is a securities researcher who analyzes investments based on past market prices and technical indicators. | | Read More » | | | Ascending Channel | | An ascending channel is the price action contained between upward sloping parallel lines. Higher highs and higher lows characterize this pattern. | | Read More » | | | Descending Channel | | A descending channel is drawn by connecting the lower highs and lower lows of a security's price with parallel trendlines to show a downward trend. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
/stock_graph-5bfc31de46e0fb0051460125.jpg)
No comments:
Post a Comment