VR Donchian - a classic indicator of the Donchian channel built on the tops of local maxima and minima, developed by Richard Donchian, is a variation of the rule of breakdown of the trading interval
This indicator is considered one of the most effective tools for determining a trend or a flat, as well as a general current trend in the market. The indicator works according to the main classic rules for determining the trend.
Trend determination rule:
If the new local maximum is higher than the previous one and the new local minimum is higher than the previous one, then there is an uptrend on the trading instrument.
If the new local maximum is lower than the previous one and the new local minimum is lower than the previous one, then there is a downtrend on the trading instrument.
If we cannot apply either of the two above-described rules to the current trend, then there is no certainty on the trading instrument or otherwise a flat.
Advantages of the indicator:
- Suitable for any financial instrument, Forex, Crypto, CFD, Metalls
- Not redrawn - the indicator code is written without taking into account the last bar, the readings on all bars except the current one always have constant values.
- Easy to install - just drag the mouse over the chart.
- Works in the strategy tester, on a demo account and live accounts.
- Suitable for both beginners and professionals, the indicator is based on the classic rules of trading.
- A large number of settings to help customize the indicator to your taste.
- Having the ability to receive messages from the indicator in three ways, Alert on the screen, Push a message to the smartphone and a message to Email. The terminal must first be configured.
- Availability of two versions for the terminal MetaTrader 4 and MetaTrader 5
Recommendations for use:
- The longer the period at which you use the indicator, the more accurate its readings will be and the more trend (by size) can be determined.
- Sharing an indicator with your trading strategy will increase the likelihood of success and reduce the likelihood of losses.
- Avoid moments of uncertainty and trade at the time of the news release. No indicator will show where the price will go at the time of the news release.
- Pick an indicator period based on the last zone of uncertainty. Put such a period so that there would be no false indications of a trend in the zone of uncertainty.
- Use multiple copies of indicators with different periods, for example, the period of the first indicator 21 and the period 48 of the second indicator.
- Buy when you break through the upper level and sell when you break through the lower level, good signals are obtained when the price breaks through several lines of different periods of indicators, on the same level.
- Period Donchian - period for calculating and building the indicator
- Show arrow label - show price labels on against indicator lines
- Color upper line trend Up - color of the upper line on growth
- Color upper line trend Down - the color of the top line while decreasing
- Width upper line - top line thickness
- Style upper line - top line style
- Upper Line Alert - allow receiving signals from the top line
- Color average line trend Up - midline color with growth
- Color average line trend Down - midline color when low
- Width average line - midline thickness
- Style average line - midline style
- Average Line Alert - allow receiving signals from the midline
- Color lower line trend Up - color of the bottom line while growth
- Color lower line trend Down - bottom line color when decreasing
- Width lower line - bottom line thickness
- Style lower line - bottom line style
- Lower Line Alert - allow receiving signals from the bottom line
- Delta point - the delta in points at which the message will be sent
- Type Message - message type, maybe Alert, Push to smartphone, email
Cleaning the graph when the indicator is removed