Donchian Channels

[expiated]

Here I have modified the APZ for a one-minute chart and added my own (white) short-term trend line.

 

[Handle123]

There is so many lines, overkill. What are you trying to gain in knowledge here, defining trend or risk or entry?

 

[expiated]

My research has gotten me results that I am led to believe are unsustainable, and when I compare them to what trading convention sites as admirable or acceptable success rates and return on investment, these standard expectations seem to fall short. So, overkill or not, I will continue with my misguided efforts, and limit my comments on what I am trying to gain in knowledge to what I have already written.

I know that by rejecting advice I am in danger of coming off as arrogant, but Scripture has taught me that God hates pride and arrogance. That everyone who is arrogant in heart is an abomination to the Lord. That he will not go unpunished. That haughty eyes and a proud heart—the lamp of the wicked—are sin. That the Lord tears down the house of the proud. That pride goes before destruction and a haughty spirit before a fall. That when pride comes, then comes disgrace. That one’s pride will bring him low, but he who is lowly in spirit will obtain honor. That with the humble is wisdom. And that before destruction a man’s heart is haughty, but humility comes before honor.

So, let me fully acknowledge that I am just an average, ordinary guy! Any success I encounter in life I owe to Yahweh. Hence, if my live trading beginning in September goes as well as my demo trading is going right now, I give all the credit, honor, and glory to my Creator, who often chooses the foolish things of this world to confound its wisdom.

Moreover, I am aware of the admonition to let another praise you and not your own mouth; a stranger and not your own lips, so I give all praise to The Alpha and the Omega. (Deuteronomy 8:18)

 

[murray t turtle]

Donchian Channels were introduced by Richard Donchian, a pioneer in the field of trend following.
The Donchian Channel is a simple trend following breakout system. The Donchian Channel works well in trending markets, but doesn't work well in a sideways channel. The signals derived from the Price Channel are based on the following basic rules:

When price closes above the Donchian Channel, buy long and cover short positions.
When price closes below the Donchian Channel, sell short and liquidate long positions.

The Donchian Channel indicator is not meant to catch tops or bottoms, only trends. Trend traders may want to extend the standard 4 week period to 8 weeks in order to wait for significant trend signals, while others may shorten the period to a more sensitive 1 or 2 weeks for liquidation purposes.

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I like them every now + then; nice trend lines

 

[schweiz]

Looks more like channels for donkeys...

 

[murray t turtle]

I loaded a second APZ on my chart with different settings so I could use its (yellow) central line as an intraday trend line, but I did not like how "wobbly" it was, so I plotted my own matching (white) proprietary moving average on the chart, which is noticeably smoother, and is what I would use if I wished to utilize this setup.

View attachment 200776

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I 've never seen donchian channels like that, Expiated ; but i like plenty of trend lines also. And while plenty of trend lines can slow one down-that can be good thing LOL

 

[expiated]

I've never seen donchian channels like that, Expiated ; but i like plenty of trend lines also. And while plenty of trend lines can slow one down-that can be good thing.

If you you are referring to the image in Post #10, those were Adaptive Price Zones rather than Donchian channels. For me, a plethora of tend lines actually accelerates my actions by removing the ambiguity that would otherwise impede my decision-making process. For me, timing is of the essence, so the last thing I want is for anything to slow me down.

 

[tomorton]

Donchian Channels can be very rewarding for traders if they are viewed with the proper perspective. By which I mean that, like trend-lines, MA's, candlestick patterns, H&S and all the rest, they should be seen not as predictors of what the market will do, but as a structure for the what the trader will do.

 

[maxinger]

I used to have many things on my charts.
As time goes by, I started to delete those confusing useless things.
Now I just have candlesticks and zigzag line.

But for those who find those things useful, they should continue using it.

 

[expiated]

I used to have many things on my charts.
As time goes by, I started to delete those confusing useless things. Now I just have candlesticks and zigzag line. But for those who find those things useful, they should continue using it.

This is the same way I operate. After deleting those things that were of no practical use to me, I was left with just moving averages and moving average (or price range) envelopes.