⚡️ Episode 93: Donchian Channels Indicator – Uncover breakouts like a pro! 📈📦
Do you want to catch price explosions before the market sees them?
The Donchian Channels indicator gives you clear signals if the price breaks its range – ideal for momentum and breakout enthusiasts! 🚀
📊 What is the Donchian Channels indicator?
It consists of 3 lines based on the highest peak and lowest trough over a certain period (default: 20 candles):
🔹 Upper line = Highest peak over the last 20 candles
🔹 Lower line = Lowest trough over the last 20 candles
🔹 Middle line = (Upper + Lower) ÷ 2
✅ If the price breaks the upper line → Bullish Breakout signal
✅ If the price breaks the lower line → Bearish Breakout signal
💡 Why do traders love it?
🔸 Monitor strong breakouts
– Price exiting the Donchian range indicates the start of a new and strong momentum
🔸 Entry signals based on volatility
– Best used after consolidation or sideways movement
🔸 Effective strategy:
– Use Donchian to enter
– And use ATR or Chandelier Exit to track stop loss
⚠️ Important notes:
❌ Not suitable for sideways markets → may give false signals
❌ Works best on higher timeframes (4 hours or daily)
🟢 Is it available on Binance?
Yes ✅
Search for "Donchian Channel" in the indicators list
🛠️ How to add it:
Open any chart
Click on [🧠 Indicators]
Type “Donchian”
Add it – the default setting (20 candles) is excellent for most strategies
📌 An ideal tool for traders who love to enter on price explosions – simple but very effective
🔥 Next episode: An adaptive indicator that reduces price noise and reveals the true market momentum… Stay tuned
