OPEN-SOURCE SCRIPT
Donchian Channels Trend
[Description]
This script is an enhanced version of the classic Donchian Channels, designed to visualize the market trend more intuitively.
Unlike standard Donchian Channels, this indicator dynamically changes its color based on the most recent breakout direction:
๐ข Lime (Bullish): When the price hits or breaks the Upper Channel (New High).
๐ด Red (Bearish): When the price hits or breaks the Lower Channel (New Low).
[Key Features]
[How to Use]
Trend Following: Look for Lime zones for long positions and Red zones for short positions.
Breakouts: A color switch signals a potential trend reversal or a fresh breakout.
Support/Resistance: The Upper and Lower bands act as dynamic support and resistance levels.
This script is an enhanced version of the classic Donchian Channels, designed to visualize the market trend more intuitively.
Unlike standard Donchian Channels, this indicator dynamically changes its color based on the most recent breakout direction:
๐ข Lime (Bullish): When the price hits or breaks the Upper Channel (New High).
๐ด Red (Bearish): When the price hits or breaks the Lower Channel (New Low).
[Key Features]
- Dynamic Coloring: The Channels and the Basis line change color immediately upon a new High or Low, clearly indicating the current market regime.
- Trend State Memory: The indicator remembers the last breakout direction and maintains the color during consolidation periods until a counter-trend breakout occurs.
- Visual Clarity: Helps traders instantly identify whether the market is in a Bullish or Bearish phase.
[How to Use]
Trend Following: Look for Lime zones for long positions and Red zones for short positions.
Breakouts: A color switch signals a potential trend reversal or a fresh breakout.
Support/Resistance: The Upper and Lower bands act as dynamic support and resistance levels.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.