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Volatility

Donchian Channels

DC

Draws the highest high and lowest low over N periods as upper and lower bands, with the midpoint between them. A break above the upper channel signals a potential uptrend; below the lower channel signals a downtrend.

Tips

The classic turtle trading strategy uses 20-period breakouts for entries and 10-period breakdowns for exits
Flat channel lines mean no new highs or lows are being made; this signals consolidation and potential for a large directional move

Parameters

Period
2 - 100