Donchian channel forex mt4 forum

A Donchian channel measures the highs and lows of the price over a donchian channel forex mt4 forum period in time. A lot of traders use this concept in their trading, although they are not familiar with the name Donchian.

Most Donchian channel expert advisors attempt to catch breakouts. I almost never see people use it with a ranging approach. Most traders want to ride the excitement of an ever-increasing market. The price, especially with the forex majors, often strikes the previous high or low. The price surges for a minute, only to retrace to well within the previous channel.

The hazard of using Donchian channels as breakout strategies is if you jump too early, you risk making a big fuss over nothing. If you jump too late, then you miss the move. I have not found any method for predicting when these moves will happen. My experience with fractal markets is that the period of a new movement, big or small, is totally random.