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Donchian Channels Double
The Donchian Channels Double indicators is located in a separate window and can be an excellent guide for those who are familiar with Donchian channel operation technique. You can select any type of displaying or both types through loading the indicator in another window with a changed type of data display. Trading using Donchian channel involves searching a moment of the channel breakthrough which is properly demonstrated by the first display model. The second model analyzes a trend. The indicator's settings involve selecting of the data display model and number of bars used for calculation of the indicator. Richard Donchian recommended to use a period equal to 20, as it is an average number of business days in a month. That means that the indicator will analyze values of the last 20 bars and calculate minimum and maximum values which will be displayed as lower and upper borders. The period equal to 20 is convenient for creating the Donchian channel. Good results in plotting the Donchian channel have been also obtained with periods equal to 18, 24 etc. For example, Turtles used a period equal to 55. The system has to be backtested to calculate required periods. At that a minimum drawdown of assets is the criterion of optimization.
- Model - model of displaying the indicator's data. 1 - histogram, 2 - channel lines.
- Period - number of bars used for calculation of the indicator.
- max_bars - number of bars in calculation. 0 - the whole range.