Early

The Donchian Channel is a classic trend-following technical indicator proposed by futures trading master Richard Donchian. Its core is to determine the trend direction through the historical price fluctuation range, capturing trend starting points, with simple operations and clear signals, making it particularly suitable for contract trend trading.

I. Composition of the Donchian Channel (3 lines)

1. Upper band (resistance line): The highest price within N periods, commonly used parameter N=20 (suitable for 1-hour/4-hour periods);
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2. Lower band (support line): The lowest price within N periods, with parameters consistent with the upper band;