Donchian Plus

WHAT IS IT?

The Donchian Channel, the basis of the Turtle Trading system, plots the highest high and lowest low over a configurable lookback period. Closes above the upper band signal upside breakouts. Closes below the lower band signal downside breakouts. The standard implementation extends the full channel width on any price spike including false breakouts, making raw channel signals unreliable on instruments prone to flash moves.

INDICATOR PRIME IMPROVEMENTS

Donchian Plus adds an ATR cap preventing excessive channel expansion from spike candles. Trend-aware asymmetric bands use R² to widen the channel in the trend direction and tighten the opposite side. Three middle-band types (SMA, EMA, DEMA) are available. Dual signal modes: Breakout mode uses raw Donchian levels for Turtle-style entries; Mean Reversion mode fires when price pierces the enhanced band and returns inside. Available exclusively with Prime Access.

HOW TO USE

In Breakout mode, enter when price closes above the raw upper channel while ADX is above 20. Best for systematic trend-following strategies on daily and higher timeframes across forex, gold, and commodities. In Mean Reversion mode, use the enhanced bands as dynamic overbought and oversold references for ranging conditions.

KIT CONFLUENCE

A Donchian breakout confirmed when price is simultaneously beyond the Keltner Plus outer band indicates trend strength from two independent channel systems. Use Ultra Parabolic SAR as the trailing stop after a Donchian breakout entry to progressively lock in profits as the trend extends.

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