RFX5 Donchian Channel
RFX5 Donchian Channel implements the classic Donchian channel indicator for MetaTrader 5 platform. This is a simple but powerful indicator historically proved to be useful for different trading styles. The indicator only has one input parameter, the period over which the upper, lower and the middle bands are calculated. The beauty of this indicator lays in being adaptive to different Markets, time-frames and trading styles. The classic "Turtle Trading" is essentially based on Donchian Channel indicator, successfully employed by professional traders. Two popular trading systems based on Turtle strategy are a ahort-term system based on 20-day breakout and a longer-term system based on 55-day breakout. The entry rule for both systems is the same, buy when the price moved above the upper band and sell when the price dropped below the lower band. The Donchian channel indicator is also employed by traders for scalping the market: Buy when price drops down from the middle band, touches the lower band and bounces back, Sell when price moves above the middle band, touches the upper band and bounces back.
- Period: A positive integer number indicating the Donchian Channel period.