Donchian Channels

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Donchian Channels

In technical analysis, a moving average stating the highest high and the lowest low for a security over the desired time period. The highest high and the lowest low are each replaced as the previous ones move out of the current time period. According to this device, a buy signal occurs if the price of a security closes above the current highest high and a sell signal occurs if it closes below the lowest low.
References in periodicals archive ?
Break outs are based on the Donchian channels that indicate a multi-period trading range - if the price breaks through the multi-period high or low this may confirm that a new trend is in place
Confirmation is required using the Donchian Channels and Exponential MACD.