Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I have looked but not found one, but am curious if anyone knows of a Donchian Channel indicator that will change color (or give some other signal) when there is a crossover.
Can you help answer these questions from other members on NexusFi?
could you explain what you mean by crossover. or even better show it on a chart. I made a version that changes colors when the mean is going up or down. if you like the color change when price closes above or below the mean, that's just a simple modification.
Something like this. Not necessarily the background color change, I just used the highlighter to show the areas. I was hoping to be able to change the donchian color when one was above the other.
Here is a Donchian Channel with a few options added.
(1) You may use "high/low" or "close" to draw the Donchian Channel.
(2) It determines the major trend via "crossover" of the outer bands.
(3) It determines the minor trend via "crossover" between outer band and midband.
(4) It has an option to display the midband.
It works pretty well with the exception that it reacts with a lag to sudden price moves, which of course is a general property of highs and lows that you determine over a period of N bars. I think there is some room for improvement. at least on time based charts.
On Range charts you will not experience this inconvenient as the sudden price move will create a larger number of range bars, thus reducing the lag of the Donchian Channel in those cases.
Here is the same Donchian channel applied to a 6-Range chart for ES 09-12, which covers approximately the same period as the chart of the previous post.
I think that it can be better used as a trendfilter on this chart compared to the minute chart. For the minute chart we would need to create an adaptive Donchian Channel, which adapts its period to directional volatility. This would be a little challenge to produce.
When I change the channel lines width only the upper channel line width changes. Is it possible to change the lower channel line width, too?
There is a different color than the ones for strong and weak uptrend where I put the arrow on the chart. Is it because I use the indicator with COBC=false?
