However, some versions of the Donchian channel indicator also plot a third line. The default value for n is set as 20 in MetaTrader 4 (MT4), but you can set it at whatever value you prefer. The lower line is the lowest price for the last n period.The upper line is the highest price for the last n period.This straightforward formula states that: It plots two lines on the chart, according to the Donchian channel formula. The indicator simply takes a user-defined number of periods, and calculates the upper and lower bands. Before we delve any deeper, let's perform a quick breakdown of the Donchian channel indicator: We're talking about the Turtle trading system, of course. Additionally, it may be interesting for you to learn about a trading indicator that is simple to understand and use, being part of a successful trading strategy. In that case, the Donchian channel indicator can help us a lot in trading. You always aim to sell at a higher price than you buy. The basics of stock trading, Forex trading, and trading in general are simple.
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