Donchyan's new channel indicator "Modern Donchi"
The price on the market rarely moves constantly in the same direction; more often than not, it forms price channels.
That is why the price channel trading strategy is one of the most popular in stock trading.
Nowadays, it's rare for anyone to build price channels manually; traders prefer to use technical analysis indicators in their work.
One such indicator is the Donchyan indicator developed by the famous trader Richard Donchyan.
The tool is used to analyze market volatility and determine support and resistance levels.
Today we present the Modern Donchi indicator, to which the developer has added a middle line, which displays the change in the average price value:
This version of the Donchyan Channel indicator can be used to identify trends, support and resistance levels, and potential level breakouts. Level Breakout Strategy
When the price breaks through the upper boundary of the channel, it is considered a bullish buy signal, and when the price breaks through the lower line of the channel, it is considered a bearish sell signal.
The indicator allows you to configure only one basic indicator, Bar Count:
Bar Count - Number of bars/candles. This is the period over which the indicator will display support and resistance levels.
After adding the indicator to the currency pair chart, for greater clarity, you can enable chart shift in the settings.
The Modern Donchi indicator is designed for installation on the MetaTrader 4 trading platform. The script will be displayed not only on the selected timeframe, but also on several adjacent ones.
