Hey there, fellow traders!
Author:
Rasoul Mojtahedzadeh
Today, let's dive into the Donchian Channel indicator, a valuable tool originally crafted by Richard Donchian. This indicator does a great job of capturing price movements and trends in the market. The beauty of it? There’s only one parameter you need to tweak: the number of previous trading sessions—or bars. The default setting is 20, but feel free to adjust it based on your strategy.
The Donchian Channel calculates the highest high and the lowest low over your set period, giving you a clear view of current support and resistance levels. It’s a fantastic way to develop your own scalping strategy!
Check out this example to spot a SELL signal for scalping:
Here’s how it works: once the current candle closes with its highest high hitting the upper band of the Donchian Channel (the red line), it’s time to open a SELL position.
Happy trading!
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