Custom Indicator for Donchian Channels!!! System Rules Included! by ChrisMoody

Mentor of mine (Mark Helweg) who ran a successful Hedge Fund, and has won several Awards for Quantatative Analysis conducted a free webinar that blew my mind. We’ve all heard most successful Traders make the most money on 5% of their trades. The reason is simple. To make BIG Money You Have to Catch BIG MOVES in the market. Do You Have A system That Get’s You In To Trades With LOW Risk, But Also Has Rules Built In To KEEP You In A WINNING TRADE? Well He Gave Me His System So I Coded It and I’m Passing Along to You….Trade Rules Will be in the First Post. INDICATOR - Donchian Channel that allows you to pick different Periods for the Upper and Lower Band. Read The First Post For an Explanation…..

Coming Soon: www.ChrisMoodyTrading.com

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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//Modified Donchonian Channel with separate adjustments for upper and lower levels
//Purpose is if you expect big move up, Use lower input example 3 or 4, and longer lower input, 40 - 100 and use lower input line as a stop out
//Opposite if you expect big move down
//Mid Line Rule in Long Example.  If lower line is below entry take partial profits at Mid Line and move stop to Break even.
//If Lower line moves above entry price before price retraces to midline use Lower line as Stop...Opposite if Shorting
//Created by user ChrisMoody 1-30-2014

study(title="CM_Donchian Channels Modified", shorttitle="CM_DC Modified", overlay=true)

length1 = input(4, minval=1, title="Upper Channel")
length2 = input(60, minval=1, title="Lower Channel")

upper = highest(length1)
lower = lowest(length2)

basis = avg(upper, lower)

l = plot(lower, style=line, linewidth=4, color=red)
u = plot(upper, style=line, linewidth=4, color=lime)

plot(basis, color=yellow, style=line, linewidth=1, title="Mid-Line Average")

fill(u, l, color=white, transp=75, title="Fill")