The Donchian Channel, created by Richard Donchian, plots line graphs. At the highest and lowest point of an asset over a period of time, the price of the candlestick is typically used in the calculation. candlestick chart It is plotted on a chart showing the open, high, low, and closing prices on a given Time Frame of the Forex market.
The Donchian Channel is useful in identifying the direction of the trend. and oscillation in the selected Time Frame.
Donchian Channel uses the principle of support and resistance we use a red circle for the Sell position and the yellow circle for a Buy position. We can see that the entry point is the lower and upper borders of the Donchian Channel, which is not different from the Overbought and Oversold levels.
Time frame: M5 or higher
Currency pairs: All