What it does
Donchian Channels plot the highest high and lowest low of the last N bars (default 20) as the upper and lower bands, with a midline at their average. The channel therefore marks the exact boundaries of the recent trading range: touching the upper band means price is at an N-bar high. It is the engine behind the famous Turtle trading breakout system.
Typedraws on the price chart
How to add it
Click Indicators (ƒx) in the header.
Search “Donchian Channels” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Trade breakouts: a close at a new 20-bar high is a long entry and a new 20-bar low a short entry, the classic Donchian system.
- Use a shorter opposite channel for exits, such as entering on 20-bar breakouts and exiting on 10-bar reversals against the position.
- Read the channel width as volatility: a narrowing channel marks compression that often precedes a strong breakout.
- Use the midline as a simple trend filter or pullback reference within an established trend.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Length | number | 20 | 1–2000 |
| Offset | number | 0 | -1000–1000 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Upper | line | #2196F3 |
| Basis | line | #FF6D00 |
| Lower | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- The legend eye toggles it off without losing your settings — handy for before/after comparisons.
- Its price-scale label can be switched off per-indicator at the bottom of the Style tab if the axis gets crowded.
- Drag the indicator to its own pane from the legend ⋯ menu if it crowds the price chart.
Watch out for
- Breakout entries buy strength at range extremes, so false breakouts in choppy markets create repeated losses; the approach needs trending conditions to pay.
- The bands are flat between new extremes and give late signals after long quiet stretches.