The Donchian Channel Trader indicator is designed for full-fledged trading on the Donchian channel. This indicator combines the analysis of price action with the search for “Pin-bar” and “Absorption” patterns near the lines of the Donchian channel. To ensure high trading efficiency, the indicator has built-in more than 4 filters, including Currency Strength Meter.
Designed by Richard Donchian, The Donchian channel is a price action channel derived from the maximum and minimum prices for the last n periods. The upper line is the maximum price for the last n periods, and the lower line is the minimum price for the last n periods.
Formula:
Top line: the maximum price for the last ‘ n ‘ periods
Bottom line: minimum price for the last ‘ n ‘ periods
Where n is the number of previously formed bars.
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Where n is the number of previously formed bars.
- Donchian Trader trades on breakout and reversal patterns near the channel lines
- Non-redrawing confirmation signals
- Sends preliminary signals before confirmation signals
- More than 4 trade filters to ensure efficient trading
- Currency Strength Meter: Measures the strength of a currency using a currency basket of 28 pairs. Filters out signals with insufficient momentum to reach the target profit
- Trend Filter: The indicator uses the 200-period (optional) Moving Average line as a trend filter. This is a popular trend filter used by professionals for day trading.
- Trend Strength Filter: Uses ADX to measure the trend phase to prevent trades from opening when the trend is depleted.
- Primary filters: The indicator is equipped with built-in pulse filters that check the sufficiency of the pulse in the current movement using the RSI and Volume.
- The indicator builds support and resistance lines, which serve as stop-loss levels.
- The indicator displays the ATR value, which serves as the target profit.
- Timeframe: Works on all timeframes below D1
- Trading pairs: works on all pairs
- Currency Strength Meter: Measures the strength of a currency using a currency basket of 28 pairs. Filters out signals with insufficient momentum to reach the target profit
- Trend Filter: The indicator uses the 200-period (optional) Moving Average line as a trend filter. This is a popular trend filter used by professionals for day trading.
- Trend Strength Filter: Uses ADX to measure the trend phase to prevent trades from opening when the trend is depleted.
- Primary filters: The indicator is equipped with built-in pulse filters that check the sufficiency of the pulse in the current movement using the RSI and Volume.
- BARS: the number of bars to draw the indicator
- Donchian Period: Donchian Channel period
- Show Channel Breakout (true/false): enable / disable breakout signals
- Enable Normal Breakout (true/false): allow standard breakouts
- Enable Engulfing Pattern Breakout (true/false): Allow breakouts of “Engulfing” patterns”
- ATR_Breakout_Ratio: ATR coefficient for determining the minimum breakout distance
- ATR_Period: ATR period for calculating the ratio of target profit and breakout distance
- Show Channel Reversal (true/false): enable / disable reversal signals
- Enable Normal Reversal (true/false): allow standard reversals
- Enable Engulfing Pattern Reverse (true/false): Allow reversals based on “Engulfing” patterns”
- Enable Pinbar Reverse Pattern (true/false): Allow reversals based on “Pin Bar” patterns”
- Give Pre-signal (true/false): enable / disable pre-alarms
- Use MA Trend Filter (true/false): Filter signals based on MA
- MA Period: The MA period for the filter
- Confirm Alerts with currency Strength (true/false): filter signals/alert by currency strength
- Minimum Currency Strength offset: minimum currency strength
- Use Trend Strength Filter (true/false): filter signals by trend strength
- Display Trend Strength Panel (true/false): display the trend strength panel
- Display Currency Meter Panel (true/false): display the currency strength panel
- Display ATR: Display the ATR panel
- Show Support and Resistance (true/false): show support/resistance lines on the chart
- Display Title colors: the color of the panel titles
- Display Text colors: Panel text color
- Sound_Alert: Sound alerts
- Email_Alert: Email notifications
- Phone_Alert: notifications to the mobile terminal
Note::
- Try to use Currency Strength to filter the signals, this is a distinctive feature of the entire system.
- Since MetaTrader 4 does not support multi-currency testing, the values of the currency forces in the strategy tester are incorrect, since only one pair is scanned during testing, and 28 pairs are scanned during real trading.
- Some signals and filters are disabled by default, you can enable them in the input parameters menu.
Have a good trade.
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