Donchian Channels means,
A simple definition of Donchian Channels is: The Duncan Channel indicator consists of three lines of moving average, consisting of an upper and lower range around the middle or average range. The upper band has the highest security value in N periods, while the lower band has the lowest security value in N periods. The area between the upper and lower bands represents the Donchian Channel. Career futures trader Richard Donchian developed indicators to identify trends in the mid-20th century. He was later called the Father of Trend Followers.
- The indicator seeks to identify bullish and bearish extremes that support reversals, as well as support breakouts, breakouts and emerging trends both up and down.
- The middle band is the average between height in N periods and low in N periods and indicates the median or average reversal value.