Donchian Gradient MT5
- Indicators
- Thushara Dissanayake
- Version: 1.0
- Activations: 5
The Donchian Gradient transforms classic channel analysis into an intuitive trend tracking system. It plots dynamic color shifting Donchian channels directly on your price chart, visually signaling trend strength and market bias shifts through real time color transitions. This auto adapting price channel adjusts its boundaries and hues to confirm emerging trends, spot potential reversals, and highlight breakout opportunities as they develop. The color coded visualization simplifies complex price action interpretation, helping traders quickly gauge market momentum at a glance.
Ideal for visual chart traders, trend trackers, and market newcomers, this tool delivers intuitive color coded insights. For best results, deploy on M5+ timeframes with trend sensitive pairs like XAUUSD or EURUSD, and combine with volume tools to filter breakouts, creating a complete visual trading system.
How It Works
The tool continuously calculates the highest high and lowest low over your chosen period (default: 10 bars), drawing these as evolving channels on the main chart. The color gradient shifts to reflect market conditions:
- Bullish Bias (Blue): Price trading near upper channel boundary
- Bearish Bias (Red): Price testing lower channel extremes
Key Features
- Live Channel Visualization: See price containment boundaries directly on chart
- Adaptive Color Coding: Instant visual feedback on trend strength
- Breakout/Reversal Alerts: Popup, mobile, or email alerts for trend changes
Practical Trading Use
- Trend Riding: Trade in direction of channel color (e.g., go long in blue phase)
- Breakout Entries: Enter when price closes outside channel with matching color shift
- Exit Signals: Consider closing positions when channel color reverses
- Reversal Warnings: Notice when price pushes boundary but color doesn’t follow
Ideal for visual chart traders, trend trackers, and market newcomers, this tool delivers intuitive color coded insights. For best results, deploy on M5+ timeframes with trend sensitive pairs like XAUUSD or EURUSD, and combine with volume tools to filter breakouts, creating a complete visual trading system.
Final Notes:
The Donchian Gradient provides objective market diagnostics through price channel dynamics. Test different periods in demo to match your trading style, shorter settings catch quick breakouts while longer periods suit swing strategies. Always combine with risk management for balanced trading.