Limited Donchian Channel is a free mt4 (Metatrader 4) indicator that can be used for trade entries and exits or as an additional trend filter that works together with an existing strategy or system.
The indicator appears in the main MT4 chart window as 3 colored lines (green, red and dotted green) that form the Limited Donchian channel.
Buy & Sell Trade Example
- Open a buy trade when price reaches the lower red line and the Limited Donchian channel is sloping upwards.
- Open a sell trade when price reaches the upper red line and the Limited Donchian channel is sloping downwards.
For scalping purposes, the indicator tends to work the best during the London and American trading sessions.
The indicator works equally well on all assets (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..) and shows promising results if used correctly.
Free Download
Download the “Limiteddonchianchanel.mq4” indicator for MT4
Indicator Chart (EUR/USD M15)
The picture below shows the Limited Donchian Channel mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Limited Donchian Channel Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Donchian bands
Does the indicator repaint? No.
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Download the “Limiteddonchianchanel.mq4” indicator for Metatrader 4
