Donchian Breakout And Rsi
- Indicators
- Mattia Impicciatore
- Version: 1.0
General Description
This indicator is an enhanced version of the classic Donchian Channel, upgraded with practical trading functions.
In addition to the standard three lines (high, low, and middle), the system detects breakouts and displays them visually with arrows on the chart, showing only the line opposite to the current trend direction for a cleaner view.
The indicator includes:
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Visual signals: colored arrows on breakout
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Automatic notifications: popup, push, and email
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RSI filter: to validate signals based on market relative strength
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Customization options: colors, line thickness, arrow codes, RSI thresholds
How it Works
The Donchian Channel calculates:
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Upper line: highest high of the last N closed bars
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Lower line: lowest low of the last N closed bars
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Middle line: average between the high and low
A bullish breakout occurs when the closing price rises above the upper line, while a bearish breakout occurs when the closing price falls below the lower line.
The indicator:
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Draws the three Donchian lines
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Displays arrows only on the first breakout after a change of direction
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Hides the line following the trend (bullish trend: shows only the red lower line; bearish trend: shows only the green upper line)
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Can filter breakouts with RSI to reduce false signals
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Can send real-time notifications
Input Parameters
Donchian Channel Settings
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indPeriod: number of closed bars used to calculate channel highs and lows
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LineWidth: line thickness
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UpLineColor: color of the upper line
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MidLineColor: color of the middle line
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DnLineColor: color of the lower line
Breakout Arrows Settings
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ArrowUpColor: color of the bullish breakout arrow
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ArrowDownColor: color of the bearish breakout arrow
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ArrowOffsetPts: distance in points from the bar high/low
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ArrowUpCode: Wingdings code for bullish arrow
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ArrowDnCode: Wingdings code for bearish arrow
Notification Settings
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EnableAlertPopup: enable/disable breakout popup alert
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EnablePush: enable/disable push notification to mobile terminal
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EnableEmail: enable/disable email sending
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EmailSubjectTag: prefix for the sent email subject
RSI Filter Settings
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EnableRSIFilter: enable the RSI filter to confirm breakouts
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RSIPeriod: RSI calculation period
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RSI_UpperThr: minimum RSI value required for bullish breakout validation
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RSI_LowerThr: maximum RSI value required for bearish breakout validation
Recommended Usage
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Breakout trading: to enter positions at key level breakouts
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Trend following: to ride strong directional movements
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Multi-strategy confirmation: use RSI or other indicators to validate signals
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Multi-timeframe monitoring: apply the indicator on several timeframes for confirmation
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