Donchian Channel? 0 replies
Looking for Simple Donchian Channel EA 0 replies
Looking for MTF Donchian Channel MQ4 4 replies
DislikedWith the trend. I often use a 200ma to define the trend in any given time frame. I look at the height of the Donchian channel. In this case it compressesthe price within the range 13733 and 13825 which is our stop loss as well. A market order above 13733, say 5 - 10 pips.
ATR tells me if it has compressed enough to be a trade break out. If the channel is less than 3 times the ATR then it's compressed.
That's it. Simple.Ignored
Disliked(I really like breakouts....)
DislikedWell I use the larger figure of the two. The thing is ATR(200) gives us a characteristic range for the pair and ATR(14) will be smaller because we are in a consolidation. I use it a bit for setting stop loss levels with other strategies. I just think of it as average bar size for this strategy.
I have been experimenting with the H1 chart but I don't know any reason why it shouldn't be used on the H4 or D1.
Define a break out: This is where you could help me because research is needed with this strategy. It works most of the time but to be more...Ignored
DislikedSo, its a "si ne qua non" condition too. If ATR14 < ATR200 and DC < 3xATRIgnored