ClearPath Trader

Donchian Channels

Highest high and lowest low over N periods (turtle-style). Breakouts beyond the channel are classic trend-following entries.

Category: Volatility · Complexity: ★★★☆☆ (3/5)

Tags: volatility, live-overlay, volatility

Live chart overlay: DC

Donchian Channels chart illustration

Formula

Upper = max(H, n); Lower = min(L, n); Mid = (Upper+Lower)/2

How to read

Turtle-style breakout: close beyond the channel is a trend-following event. Mid is a mean reference.

Limitations

Whipsaws in ranges. Always in the market if you trade every breakout.

Typical settings

20 entry / 10 exit

Donchian Channels is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.

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