Donchian Forex Trend Following Strategy

0
722

Donchian Channels Trading System

Donchian trading system is a trend following system. It uses 3 Donchian channels. It also uses dynamic zone RSI, 2 moving averages.

Here are the set ups for this system:

  • First channel to 60 periods – white channels
  • Second channel to 20 periods – magenta channels
  • Third channel to 10 periods – yellow channels.

Go to input then set to 2 on all channels in the advance area. This have the effect that candles can break through the lines of the advance is set to 0 then the candles will be contained by the channels. Since this is a breakout system it is easier to see the candles break a line and therefore I have made the adjustment for visual effect.

Delete 60 period channel if you want to trade short timeframes.
Delete 10 period channel if you want to trade for longer timeframes.

SHORT TIMEFRAME:

  • Enter trade when price breaks to don 20.
  • Exit if it will retrace back over the don 10 channels.

LONG TIMEFRAME:

  • Enter when Don 60 (white) channel is broken.
  • Exit position when it will retrace back over Don 20 (Magenta).

For sell entry:

  • Enter short if RSI is below 50.

For buy entry:

  • Enter long if RSI is above 50.
  • Enter in the direction of the shorter (green) MA.

These two the RSI and MA’s are my filters. You can set the time lines to any setting you want
Just to avoid confusion.

Recommended MT4 Brokers

XM Broker

  • Free $50 To Start Trading Instantly! (Withdraw-able Profit)
  • Deposit Bonus up to $5,000
  • Unlimited Loyalty Program
  • Award Winning Forex Broker
  • Additional Exclusive Bonuses Throughout The Year

XM broker

>> Sign Up for XM Broker Account here <<

FBS Broker

  • Trade 100 Bonus: Free $100 to kickstart your trading journey!
  • 100% Deposit Bonus: Double your deposit up to $10,000 and trade with enhanced capital.
  • Leverage up to 1:3000: Maximizing potential profits with one of the highest leverage options available.
  • ‘Best Customer Service Broker Asia’ Award: Recognized excellence in customer support and service.
  • Seasonal Promotions: Enjoy a variety of exclusive bonuses and promotional offers all year round.

fbs broker

>> Sign Up for FBS Broker Account here <<

Click here below to download:

Save

Save



Get Download Access

Get Smarter About Forex Trading Using Indicators

Join 100,000+ subscribers and get our 5 min daily newsletter on what matters in forex.

We do not sell or share your information with anyone.

LEAVE A REPLY

Please enter your comment!
Please enter your name here