Last updated:
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.
Level up your trading
Learn to read the chart — not just the indicator
eBook · Instant PDF
Video Course · 12 modules
Recommended MT4/MT5 Brokers
- ✓ *FREE *$50 to start (withdrawable)
- ✓ Deposit bonus up to $5,000
- ✓ Negative balance protection
Trading forex and CFDs carries a significant risk of loss and is not suitable for everyone. Broker links are affiliate links — we may earn a commission at no cost to you.
Forex Strategy Download:
Enter Your Email Address below, download link will be sent to you.