OPEN-SOURCE SCRIPT
Dual Donchian Channel Clouds
Here is a twist on the classic Donchian Channels indicators. Quickly, Donchian Channels show the current price relative to the highest or lowest close over a lookback period. This indicator adds a shorter high/low lookback period to the standard 20 period to create clouds. This makes it very easy to identify the current trend. A simple moving average of the middle line is displayed and acts like dynamic support or resistance since it represents an approximate 50% pullback from a recent high or low.
Trade signals (including reversals and re-entries) can be toggled on or off. These are triggered price moving a user defined number of standard deviations away from the middle line.
Happy Trading!
Trade signals (including reversals and re-entries) can be toggled on or off. These are triggered price moving a user defined number of standard deviations away from the middle line.
Happy Trading!
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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