The Donchian Channel indicator for Metatrader 5 draws the popular Donchian channel on the chart and it can be used for trade entry and exit signals.
The indicator pops up in the main chart as a colored channel wrapped around the candlesticks.
How to spot market trends with the Donchian Channel?
- The trend is considered bullish when the Donchian Channel is sloping upward.
- The trend is considered bearish when the Donchian Channel is sloping downward.
The following indicator inputs and parameters can be modified: time frame, period, interpolation.
For scalping the Donchian channel, the best results will be achieved during the London and American trading session.
Make yourself familiar with this technical indicator and test it first on a demo account.
It supports all time frames and Forex pairs.
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The following chart shows how the Donchian Channel indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Donchian Channel Forex Indicator?
Find a simple trading example below:
- A valid buy signal occurs when price touches the lower Donchian band and the Donchian channel is sloping upward (see chart above).
- Open a buy transaction and place your stop loss 3 pips below the lower Donchian band.
- Close the buy trade when price touches the upper Donchian band (resistance).
- A valid sell signal occurs when price touches the upper Donchian band and the Donchian channel is sloping downward.
- Open a sell transaction and place your stop loss 3 pips above the upper Donchian band.
- Close the sell trade when price touches the lower Donchian band (support).
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Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Donchian channel (sl)(mtf).mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration