Donchian Channels

[DaveSkender]

Community discussion about Donchian Channels

Donchian Channels are based on the channel breakout aspect of the original proprietary Turtle Trading System. Richard Donchian used a price crossover of the highest high and lowest low over the preceding 20-day period as a trade signal.

[DaveSkender]

synopsis of historical discussions

The most common misconception is that the current value of the Donchian Channel should include the current period High/Low value. If it were included, intuitively, this indicator would never be able to fulfill its original trade signal purpose as a breakout system, the price would never crossover and breakout!

Our reputable sources:

• Corporate Financial Institute (CFI) | Donchian Channels
• StockCharts.com | Price Channels
• Original Turtle Trading Rules @ OriginalTurtles.org

related issues

• Donchian Channel problem #607
• Donchian Channel uses current period price #286
• GetDonchian off by one time period #1195
• Help! Results don't match TradingView! #801