Donchian Bands is a free mt4 (Metatrader 4) channels indicator that can be used for both trade entry and exit or as an additional trade filter.
The indicator appears in the main MT4 chart window as three colored lines that form the Donchian channel.
Trading idea
- Open a buy trade when the candlestick touches the lower red line and the Donchian channel is sloping upwards.
- Open a sell trade when the candlestick touches the upper red line and the 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 “Donchian Bands.ex4” indicator for MT4
Indicator Example Chart (EUR/USD Daily)
The example chart below displays the Donchian Bands 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 Donchian Bands 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.
Download Now
Download the “Donchian Bands.ex4” indicator for Metatrader 4
