Donchian Channel

The Donchian Channel was developed by Richard Donchian and is a very simple but effective price indicator to use. It is formed by taking the highest high and the lowest low of the period, as well as the midline and plots it in the chart. One can trade breakouts with Donchian Channels and buy when prices breaks above the upper channel with good volume.

//Set 20 period Donchian Channel Variables
Set DCupper = DCupper(20)
Set DCmid = DCmid(20)
Set DClower = DClower(20)

//Plot in chart
plot(DCupper,line,green,main)
plot(DCmid,line,gray,main)
plot(DClower,line,red,main)