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

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…..

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.


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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")