Donchian Channels Indicator
Richard Donchian, a pioneer in trend-following systems and the creator of Donchian Channels, significantly impacted trading despite achieving success later in life, demonstrating that age is no barrier in trading. His volatility indicator, based on recent highest and lowest prices over a defined period, is primarily utilized with a recommended period of 20 days, aligning with typical monthly trading patterns. Notably, variations like periods of 18 or 24 can yield valuable insights, while the Turtle trading system employed a 55-period strategy for market entries. Primarily used in breakout trading systems, Donchian Channels feature upper and lower border lines along with a center line to aid traders in navigating market trends and managing their risk.