OPEN-SOURCE SCRIPT
Donchain Signal
Updated
Simple Donchain buy and sell signal
Release Notes
Donchian channels are used to show volatility, breakouts, and potential overbought/oversold conditions for a security. The Donchian system uses adjustable bands that are set equal to the n-period's highest highs and lowest lows across a moving average. The upper and lower bounds of a Donchian channel can also form effective support and resistance levels, particularly when used in combination with other technical indicators.Donchian channels also make natural partners with another moving average indicator for a crossover strategy. The Donchian moving average middle line is likely to form the short-term average in these situations, although some have used a 20-day Donchian channel in conjunction with a five- or 10-day channel to exit a position before a consolidation eats into short-term profits.
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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