Koalafied Donchian Channel WidthDonchian Channel Width indicator with average channel width value and Standard Deviations shown.
Experimental gauge of volatility. Channel Width greater than average over lookback period shows higher levels of volatility, whereas channel width below average is correlated to low historical volatility. Extensions of width over user selected standard deviations show peaks in volatility.
Unique as average channel width is taken from array of value changes updating only when prior high/lows are breached instead of bar by bar like similar indicators.
Size of array (lookback) is user adjustable.
Donchianchannelwidth
Donchian Channels with Limits and Shadows | by Octopu$ 🌊 Donchian Channels with Middle Line, Limits and Shadows | by Octopu$
Donchian Channels are three lines generated by Moving Average calculations.
These lines formed by upper and lower bands around a midrange or median band.
The Upper Band marks the Highest price of a security over X periods of time.
While the Lower Band marks the Lowest price over the same period.
Now, the Limit bands are the High and Low prices over a Y period of time (different than X)
The difference about using Limits with the Bands on Donchian Channels is the time length:
By using different time comparisons (X and Y) you are able to identify previous Highs and Lows.
This is very useful for Support and Resistance levels regarding the Price Action
As well as Pivot Points, considering the possibility off Breakouts or Bounces.
Usually - as a General Rule - the Price tends to navigate in-between these channels
That's where DC Channels + Limits w/ Shadows come into play!
Highs and Lows serve as Supply and Demand Zones as well.
The Middle Line can be used as a spot for Reversal/Continuation.
All of this also makes the Donchian Channels a great tool for Trend Identification.
The combination of your understanding and analysis as well as other Indicators and Factors as Confluence, you can improve your Charting Analysis.
www.tradingview.com
AMEX:SPY
ANY Ticker. ANY Timeframe.
( SPY 5m as an example only.)
Features:
• Upper Channel
• Lower Channel
• Limit High
• Limit Low
• Middle Line
• Shadow
Options:
• Color Picker
• Line Styling
• Toggle On/Off
• Length Customization
• Background Transparency
Notes:
v1.0
Indicator release.
Changes and updates can come in the future for additional functionalities or per requests. Follow and Stay Tuned!
Did you like it? Please Support and Shoot me a message! I'd appreciate if you dropped by to say thanks! Thank you.
- Octopu$
🐙
TradeChartist RSI Donchian Channels™TradeChartist RSI Donchian Channels is a helpful RSI based indicator that helps visualize the RSI trend (using 4 plot styles including RSI Candles) by plotting Donchian Channels of user preferred length.
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Features of ™TradeChartist RSI Donchian Channels
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Plots RSI using user preferred plot style (RSI Candles, Line, Histogram and Area).
Plots RSI Donchian Channels of user preferred DC Length (Default - 14, Min - , based on RSI source price (Default - ohlc4), RSI Length (Default - 14) and EMA smoothing of RSI (Default - 5)
Option to highlight Overbought and Oversold zones.
Highlights Bull and Bear RSI Trend of RSI Donchian Channels.
Displays various RSI Zones using Background fill.
Helps visualize Divergences by plotting RSI Highs and Lows.
The indicator's Trend Identifier Connects to ™TradeChartist Plug and Trade or other compatible TV Scripts as Oscillatory Signal to Generate trade entries, Targets etc. This feature is purely for testing purposes and shouldn't be used on its own for trading.
Note: The RSI Donchian Channels trend alone as a standalone indicator cannot be used for trades as non-trending zones and divergence zones will have significant drawdowns on higher time frames. Also, every asset/timeframe shows different but stable dynamic with RSI Donchian Channels in my limited research. Works very well for certain assets on 4hr for Forex pairs. Nevertheless, it is a very good addon to use to confirm RSI Trend especially for RSI based traders.
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Example Charts
1. EUR-USD 4hr chart using RSI Source - hl2, RSI Length - 14, Smoothing - 10 and DC Length - 21 connected to Plug and Trade.
2. BTC-USD Daily chart using RSI Source - close, RSI Length - 14, Smoothing - 5 and DC Length - 21 connected to Plug and Trade.
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Best Practice: Test with different settings first using Paper Trades before trading with real money
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TradeChartist Visualizer ™TradeChartist Visualizer is a fully packed Trader's toolkit that helps decide Trade Entries and Exits based on Bollinger Bands and Donchian Channels breakouts and can be further exploited by the use of various visualizers and built in Filters like Ichimoku Cloud, 15 different Moving Averages, RSI, TradeChartist's original MA Visualizer and Automatic Levels Generator.
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Bollinger Bands is a classic indicator that uses a simple moving average of 20 periods, along with plots of upper and lower bands that are 2 standard deviations away from the basis line. These bands help visualize price volatility and trend based on where the price is, in relation to the bands.
Donchian Channels comprises of three plots - a upper band, a lower band and a mean line (or mid line of the channel). The upper band is based on highest high of N periods specified by the user and the lower band is based on the lowest low of N periods specified by the user. These channels help spot price breaching high or low of last N periods clearly, thereby aiding the trader to understand the price action of any security better on any given timeframe.
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╔═════ 𝗕𝗕 & 𝗗𝗼𝗻𝗰𝗵𝗶𝗮𝗻 𝗖𝗵𝗮𝗻𝗻𝗲𝗹𝘀 ═════╗
™TradeChartist Visualizer is based on the idea of Bollinger Bands and Donchian Channels Breakout model for generating Trade Entries. Visualizer uses the following three fundamental plot options from the settings that the user can choose from, to spot breakouts, support/resistance levels and the trading price range of the security.
1. Bollinger Bands
The 𝟏. 𝐁𝐨𝐥𝐥𝐢𝐧𝐠𝐞𝐫 𝐁𝐚𝐧𝐝𝐬 option plots the Bollinger Bands for the chart timeframe (default is 55 SMA with 1 standard Deviation). This can be changed by entering different values in BB Sᴛᴀɴᴅᴀʀᴅ Dᴇᴠɪᴀᴛɪᴏɴ and MA Lᴇɴɢᴛʜ ғᴏʀ BB/Dᴏɴᴄʜɪᴀɴ Cʜᴀɴɴᴇʟs .
To use a different Moving Average for the Bollinger Bands Basis line, uncheck 𝐒𝐌𝐀 𝐁𝐁 𝐨𝐧𝐥𝐲 - 𝐔𝐧𝐜𝐡𝐞𝐜𝐤 𝐟𝐨𝐫 𝐧𝐨𝐧-𝐒𝐌𝐀 𝐁𝐁
The option is enabled as default as it keeps the SMA as standard. Unchecking this option and choosing a different moving average out of the 15 MAs in the dropdown, the plot changes significantly for each. Also a warning label will appear on screen if Standard Deviation more than 1 is used for non standard MA for Bollinger Bands, as the settings must be tested for non-standard Bollinger Bands before planning to trade with it.
2. True Donchian Channels
The 𝟐. 𝐓𝐫𝐮𝐞 𝐃𝐨𝐧𝐜𝐡𝐢𝐚𝐧 𝐂𝐡𝐚𝐧𝐧𝐞𝐥𝐬 option plots Donchian Channels by inspecting the lookback lengths for highest highs and lowest lows of the user specified periods, which can be changed in Uᴘᴘᴇʀ Dᴏɴᴄʜɪᴀɴ Cʜᴀɴɴᴇʟ Lᴇɴɢᴛʜ and Lᴏᴡᴇʀ Dᴏɴᴄʜɪᴀɴ Cʜᴀɴɴᴇʟ Lᴇɴɢᴛʜ user input boxes from Visualizer settings.
3. Donchian Channels - MA and Non-MA Source
The 𝟑. 𝐃𝐨𝐧𝐜𝐡𝐢𝐚𝐧 𝐂𝐡𝐚𝐧𝐧𝐞𝐥𝐬 - 𝐌𝐀/𝐍𝐨𝐧-𝐌𝐀 𝐒𝐨𝐮𝐫𝐜𝐞 option plots modified Donchian Channels based on highest high and lowest low of Moving Average or the Source using user specified periods, which can be changed in Uᴘᴘᴇʀ Dᴏɴᴄʜɪᴀɴ Cʜᴀɴɴᴇʟ Lᴇɴɢᴛʜ , Lᴏᴡᴇʀ Dᴏɴᴄʜɪᴀɴ Cʜᴀɴɴᴇʟ Lᴇɴɢᴛʜ , MA Lᴇɴɢᴛʜ ғᴏʀ BB/Dᴏɴᴄʜɪᴀɴ Cʜᴀɴɴᴇʟs choosing the source plot from Sᴏᴜʀᴄᴇ and MA Type from MA ᴛʏᴘᴇ - (ғᴏʀ ᴘʟᴏᴛs 1 & 3) . For Donchian Channels plot of Non-MA Source, choose Use Source from MA ᴛʏᴘᴇ - (ғᴏʀ ᴘʟᴏᴛs 1 & 3) dropdown.
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╔═════════ 𝗠𝗔 𝗩𝗶𝘀𝘂𝗮𝗹𝗶𝘇𝗲𝗿 ═════════╗
MA Visualizer is a powerful and very useful original visual method to plot Moving Averages of the close price of the security for user specified look back period in a visually appealing style in the form of colour coded bands. MA Visualizer not only helps the trader spot the price action of the security relative to the moving average, but also paints a visual picture of the trend strength, which must be seen and used on chart to appreciate its elegance.
Activate 𝗠𝗔 𝗩𝗶𝘀𝘂𝗮𝗹𝗶𝘇𝗲𝗿 and choose the MA type from MA Vɪsᴜᴀʟɪᴢᴇʀ Tʏᴘᴇ dropdown and entering the lookback period in MA Vɪsᴜᴀʟɪᴢᴇʀ ᴘᴇʀɪᴏᴅ input box. MA Visualizer colour theme can be be changed from MA Vɪsᴜᴀʟɪᴢᴇʀ Cᴏʟᴏʀ Sᴄʜᴇᴍᴇ dropdown.
The faster of the two set of bands that form the MA Visualizer reacts to price action faster and can be clearly seen from its change of colour from Bull Colour to Bear Colour or viceversa earlier than the slower set of bands. The fill colour between the bands also helps the user stay in a trade or exit a trade based on other confirmators or filters included in ™TradeChartist Visualizer .
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╔═══════ 𝗦𝗶𝗴𝗻𝗮𝗹𝘀 𝗮𝗻𝗱 𝗙𝗶𝗹𝘁𝗲𝗿𝘀 ═══════╗
𝗦𝗶𝗴𝗻𝗮𝗹𝘀
Trade Signals can be enabled along with use of various filters from this heading in Visualizer settings. To plot Trade entry markers on chart when a trade signal is generated, enable 𝐁𝐁/𝐃𝐨𝐧𝐜𝐡𝐢𝐚𝐧 𝐂𝐡𝐚𝐧𝐧𝐞𝐥𝐬 𝐁𝐫𝐞𝐚𝐤𝐨𝐮𝐭 𝐒𝐢𝐠𝐧𝐚𝐥𝐬.
The script automatically detects the breakouts based on user specified settings under 𝗕𝗕 & 𝗗𝗼𝗻𝗰𝗵𝗶𝗮𝗻 𝗖𝗵𝗮𝗻𝗻𝗲𝗹𝘀. Trade Entries are plotted on the real-time breakout candle, so it is recommended to wait for bar close before taking a position in the direction of the breakout.
𝗙𝗶𝗹𝘁𝗲𝗿𝘀
Various Filters can be used from this heading to reduce noise and help make the trade decision more effective and eliminates unproductive trades when the price is ranging or during sideways movement.
To use Filters, enable 𝐔𝐬𝐞 𝐓𝐫𝐚𝐝𝐞 𝐅𝐢𝐥𝐭𝐞𝐫 and choose the Filters from under Tʀᴀᴅᴇ Fɪʟᴛᴇʀ 1 and Tʀᴀᴅᴇ Fɪʟᴛᴇʀ 2 . If --- is chosen, no filter will be used. Trade filter parameters can be changed from under 𝗙𝗶𝗹𝘁𝗲𝗿 𝗣𝗮𝗿𝗮𝗺𝗲𝘁𝗲𝗿𝘀 section of Visualizer settings. The two trade filter dropdowns enable traders to use upto 2 filters from the following.
══> MA filter - This filters entries after a breakout only if the close price had breached the MA price. Filter MA is based on the same settings as MA Visualizer. This MA used for Filter can also be plotted by enabling 𝐃𝐢𝐬𝐩𝐥𝐚𝐲 𝐌𝐀 𝐅𝐢𝐥𝐭𝐞𝐫 (𝐌𝐀 𝐕𝐢𝐬𝐮𝐚𝐥𝐢𝐳𝐞𝐫 𝐒𝐞𝐭𝐭𝐢𝐧𝐠𝐬). To view this MA plot clearly, disable MA Visualizer.
══> MA Visualizer filter - This filters entries after a breakout only if both set of MA Visualizer bands had turned into same colour (either Bull or Bear Colour) agreeing with the direction of the breakout.
══> RSI filter - This filters entries after a breakout only if the RSI had crossed above RSI - Lᴏɴɢ Eɴᴛʀʏ Fɪʟᴛᴇʀ for Longs or if RSI had crossed below RSI - Sʜᴏʀᴛ Eɴᴛʀʏ Fɪʟᴛᴇʀ .
══> Kumo Breakout filter - This filters entries after a breakout only if price had closed above or below the Kumo of the Ichimoku Cloud in the direction of the breakout.
══> Price crossing Kijun Sen - This filters entries after a breakout only if close price had crossed Kijun Sen or the Ichimoku Base Line in the direction of the breakout.
To visualize the Kumo Breakout or Price crossing Kijun Sen, Ichimoku Cloud can be plotted on chart by enabling 𝐃𝐢𝐬𝐩𝐥𝐚𝐲 𝐈𝐜𝐡𝐢𝐦𝐨𝐤𝐮 𝐂𝐥𝐨𝐮𝐝 from 𝗙𝗶𝗹𝘁𝗲𝗿 𝗣𝗮𝗿𝗮𝗺𝗲𝘁𝗲𝗿𝘀 section of Visualizer settings.
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╔═══ 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗰 𝗟𝗲𝘃𝗲𝗹𝘀 𝗚𝗲𝗻𝗲𝗿𝗮𝘁𝗼𝗿 ════╗
Enabling 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗰 𝗟𝗲𝘃𝗲𝗹𝘀 𝗚𝗲𝗻𝗲𝗿𝗮𝘁𝗼𝗿 plots support and resistance levels automatically without any input from the user other than preferred levels plot from the indicator settings namely,
Plot Local Levels for Lower TF - Plots all important Support/Resistance levels for mostly smaller time frames (can be used for up to 1hr in most cases). Recommended for Scalping/Swing Trading mostly dependent on volatility.
Plot Local Levels for Higher TF - Plots all important Support/Resistance levels inferred from mostly time frames - Short to Mid term outlook.
Use Trading View Data Window to make effective use of the levels.
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╔═════════ 𝗨𝘀𝗲𝗳𝘂𝗹 𝗘𝘅𝘁𝗿𝗮𝘀 ═════════╗
Volatility exhaustion is detected by the script and plots $ on bar highs for Long Trades and bar lows for Short Trades if Tᴀᴋᴇ Pʀᴏғɪᴛ Bᴀʀs is enabled.
Candles/Bars can be colored with Price action trend strength by enabling Vɪsᴜᴀʟɪᴢᴇʀ Cᴏʟᴏʀ Bᴀʀs and by choosing one of two themes from Bᴀʀ Cᴏʟᴏʀ Sᴄʜᴇᴍᴇ . Bar colors can also be inverted using Iɴᴠᴇʀᴛ Bᴀʀ Cᴏʟᴏʀs option.
To paint the background of the chart to spot trade zones, enable Tʀᴀᴅᴇ Zᴏɴᴇs Bᴀᴄᴋɢʀᴏᴜɴᴅ Fɪʟʟ .
Alerts
Alerts can be created for Long and Short entries by using Once Per Bar Close as Alert Frequency. Entries are generated on Real time bars based on Breakout and filter conditions. It is recommended to wait for bar close before taking a position based on Visualizer Trade Entries.
The indicator does not repaint and can be confidently used for alerts and trade entries without worrying about signals disappearing.
™TradeChartist Visualizer can also be connected to ™TradeChartist Plug and Trade to generate entries along with Targets, Stop Loss plots etc. Target and Stop Loss alerts can be created using Plug and Trade's Alerts system.
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There are several combinations of settings that can be tested on the security traded based on timeframe and risk/reward expectations. The indicator can be used for trade entries with filter combinations or can be used as standalone Visualizer for trend confirmations, levels etc. Following are a few examples using the Visualizer.
Example Charts
1. ETH-USDT 1hr chart using Bollinger Bands (55/1, SMA) with 89 period Hull MA as MA Visualizer filter for BB Entries.
2. AAPL 1hr chart using 34 period Donchian Channels with 89 period Zero-Lag EMA as MA Visualizer filter for Entries.
3.EUR-USD 1hr chart using 34 period Donchian Channels with 89 period TEMA as MA Visualizer Filter for Entries.
4. XBT Daily chart using 9/21 Donchian Channels with Kumo Breakout Filter and 34 period Hull MA Visualizer Filter for Entries connected to Plug and Trade.
5. LINK-USDT 1hr chart using 34 period Donchian Channels with 55 period LSMA MA Visualizer Filter for Entries with Ichimoku Cloud Plot.
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Best Practice: Test with different settings first using Paper Trades before trading with real money
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This is not a free to use indicator. Get in touch with me (PM me directly if you would like trial access to test the indicator)
Premium Scripts - Trial access and Information
Trial access offered on all Premium scripts.
PM me directly to request trial access to the scripts or for more information.
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Donchian Channel with Range AdditionA Donchian Channel with additional zones at places where its range is smaller than a set amount of atr. Thus it kind of combines with Keltner Channel qualities. Purpose is to set a stop loss wide enough to avoid shaking out of a position. The example chart shows a Philips day chart, where I opened position on 16 juli at 37,50 and set the stop loss at low border level 35,60, on 23 juli was an earnings rapport, the wick of the candle shows that quotes went very low, obviously smart traders had to fill a huge order and hunted for stops, triggering my stop closing the position. next days quotes went a lot better, so I missed the fun. The Donchian Channel was too narrow because quotes had ranged in the previous weeks. If I had placed my stop on the additional low, setting it 5 atr below the high border, my stop would have been safe.
Donchian Channel Width Strategy The Donchian Channel was developed by Richard Donchian and it could be compared
to the Bollinger Bands. When it comes to volatility analysis, the Donchian Channel
Width was created in the same way as the Bollinger Bandwidth technical indicator was.
WARNING:
- This script to change bars colors.
Donchian Channel Width The Donchian Channel was developed by Richard Donchian and it could be compared
to the Bollinger Bands. When it comes to volatility analysis, the Donchian Channel
Width was created in the same way as the Bollinger Bandwidth technical indicator was.
As was mentioned above the Donchian Channel Width is used in technical analysis to measure
volatility. Volatility is one of the most important parameters in technical analysis.
A price trend is not just about a price change. It is also about volume traded during this
price change and volatility of a this price change. When a technical analyst focuses his/her
attention solely on price analysis by ignoring volume and volatility, he/she only sees a part
of a complete picture only. This could lead to a situation when a trader may miss something and
lose money. Lets take a look at a simple example how volatility may help a trader:
Most of the price based technical indicators are lagging indicators.
When price moves on low volatility, it takes time for a price trend to change its direction and
it could be ok to have some lag in an indicator.
When price moves on high volatility, a price trend changes its direction faster and stronger.
An indicator's lag acceptable under low volatility could be financially suicidal now - Buy/Sell signals could be generated when it is already too late.
Another use of volatility - very popular one - it is to adapt a stop loss strategy to it:
Smaller stop-loss recommended in low volatility periods. If it is not done, a stop-loss could
be generated when it is too late.
Bigger stop-loss recommended in high volatility periods. If it is not done, a stop-loss could
be triggered too often and you may miss good trades.
