BEST Simple Forex Donchian Channel Breakout Trading Indicator & Strategy

Advanced Donchian Channel Breakout  – BEST Simple Forex Donchian Channel Breakout Trading Indicator & Strategy. You can use martingale between 1.5 and 2.0 for position management.

The Donchian channel is a useful indicator for seeing the volatility of a market price. If a price is stable the Donchian channel will be relatively narrow. If the price fluctuates a lot the Donchian channel will be wider.
Its primary use, however, is for providing signals for long and short positions. If a security trades above its highest n periods high, then a long is established. If it trades below its lowest n periods low, then a short is established.


Donchian Channel Breakout Trading Rules

Donchian Channel Breakout Trading Strategy is a channel breakout trading method based on metatrader 4 indicators.

In this version there is also as filter half trend indicator. This a trend following breakout.

  • Best Time Frame : 15 min or higher.
  • Financial Market : any.
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BUY Rules


  • FXPass Signals green arrow.
  • Half Trend 1.02 aqua line.
  • FXPass Mash Channel green bar.
  • Momentum 14 upward and above 100 level.
  • Signal Bars indicator blue.


SELL Rules


  • FXPass Signals red arrow.
  • Half Trend 1.02 red line.
  • FXPass Mash Channel red bar.
  • Momentum 14 downward and below 100 level.
  • Signal Bars indicator red.


EXIT Position

  • With predetermined profit target: ratio 1:2 stop loss.
  • Stop loss for buy below red line.
  • Stop loss for sell above blue line.


Aggressive approach

You can use martingale between 1.5 and 2.0 for position management.

When you use the martingale always remember to use stop loss and profit target constants that depend on the time frame.


Donchian Cannel Note:

The Donchian channel is an indicator used in market trading developed by Richard Donchian. It is formed by taking the highest high and the lowest low of the last n periods. The area between the high and the low is the channel for the period chosen.

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It is commonly available on most trading platforms. On a charting program, a line is marked for the high and low values visually demonstrating the channel on the markets price (or other) values.

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