Use the Donchian Channel to time your entries, filter high-probability setups and ride massive trends.
SUBSCRIBE: https://bit.ly/2MsGjRR
If you want more actionable trading tips and strategies, go to https://www.tradingwithrayner.com
First and foremost, what is a Donchian Channel? How do I get this indicator on my chart? If you're using TradingView just go down to the Indicator Tab, search for Donchian, and you click this one over here, and here's what you see on your chart, the Donchian Channel. It comes with the default 20-period setting.
Tips for Trading with Donchian Channel #1
The first tip is that you can use Donchian Channel to help you filter for high-probability trading setups. It can help you to trade with the trend. Here's how. Let's say you want to buy with the trend. What you'll do is pay attention to the middle band and where the price is relative to the middle band. If the price is below the middle band, then you look for short trading opportunities. Means you look to sell. If the price is above the middle band, then you look for long trading opportunities, meaning you look to buy. This is a simple filter that will keep you on the right side of the markets more often than not.
Tips for Trading with Donchian Channel #2
The second thing a Donchian Channel can do for you is to help you time your entries. What you can do is you can look to trade the breakdown or the breakup. Can see that over here this candle over here pretty much made a new 20-day low. You can look to short the market, as the price made a new 20-day low. Alternatively, this candle over here made a new 20-day high, so you can look to buy the market as the price makes a new 20-day high. This is only to serve as an entry trigger. This is not a strategy but just an entry trigger.
Tips for Trading with Donchian Channel #3
The third thing a Donchian Channel can do for you is to help you ride massive trends. Here's how it works. You can see, right? Let's say, for example, you are short this market, this crude-oil market. Let's say the market breaks this low over here, this 20-day low, you go short. Let's say your stop-loss; it's above this swing high, let's say you put it somewhere here, one ATR above it, somewhere here. You can trail your stop-loss using this middle band over here. This means if the price doesn't break above the middle band, you will stay short, you will hold onto your short position.
Tips for Trading with Donchian Channel #4
The fourth tip is that the Donchian Channel works very well with the Average-True-Range indicator. Let me pull out this ATR indicator. We'll use the default settings, as well. I don't have to be too fancy on this. I like to look at the weekly chart. The thing that I like to look for is to see low volatility in the markets. I want to see that the ATR value is at multiyear lows. This means that the ATR value over the last two or three years, this is the lowest level. This is what I'm looking for.
If you want to learn more, you can go down to my website TradingWithRayner.com, and scroll down to the bottom, and you can see these two trading guides: The Ultimate Trend Following Guide and The Ultimate Guide to Price-Action Trading. If you want to learn how to ride massive trends in a market, go and download this guide over here, the trend-following guide, because I'll share with you practical trading strategies and techniques to ride massive trends.
If you want to learn more about price-action trading to better time your entries and exits you can download this Ultimate Guide to Price-Action Trading. Both of them are completely free. Just come down to my website, TradingWithRayner.com, click on this blue button, and I'll send it to your email, for free.
Thanks for watching!
FOLLOW ME AT:
Facebook: https://www.facebook.com/groups/forextradingwithrayner
Twitter: http://www.twitter.com/rayner_teo
My YouTube channel: http://bit.ly/2EFg5VN
SUBSCRIBE: https://bit.ly/2MsGjRR
If you want more actionable trading tips and strategies, go to https://www.tradingwithrayner.com
First and foremost, what is a Donchian Channel? How do I get this indicator on my chart? If you're using TradingView just go down to the Indicator Tab, search for Donchian, and you click this one over here, and here's what you see on your chart, the Donchian Channel. It comes with the default 20-period setting.
Tips for Trading with Donchian Channel #1
The first tip is that you can use Donchian Channel to help you filter for high-probability trading setups. It can help you to trade with the trend. Here's how. Let's say you want to buy with the trend. What you'll do is pay attention to the middle band and where the price is relative to the middle band. If the price is below the middle band, then you look for short trading opportunities. Means you look to sell. If the price is above the middle band, then you look for long trading opportunities, meaning you look to buy. This is a simple filter that will keep you on the right side of the markets more often than not.
Tips for Trading with Donchian Channel #2
The second thing a Donchian Channel can do for you is to help you time your entries. What you can do is you can look to trade the breakdown or the breakup. Can see that over here this candle over here pretty much made a new 20-day low. You can look to short the market, as the price made a new 20-day low. Alternatively, this candle over here made a new 20-day high, so you can look to buy the market as the price makes a new 20-day high. This is only to serve as an entry trigger. This is not a strategy but just an entry trigger.
Tips for Trading with Donchian Channel #3
The third thing a Donchian Channel can do for you is to help you ride massive trends. Here's how it works. You can see, right? Let's say, for example, you are short this market, this crude-oil market. Let's say the market breaks this low over here, this 20-day low, you go short. Let's say your stop-loss; it's above this swing high, let's say you put it somewhere here, one ATR above it, somewhere here. You can trail your stop-loss using this middle band over here. This means if the price doesn't break above the middle band, you will stay short, you will hold onto your short position.
Tips for Trading with Donchian Channel #4
The fourth tip is that the Donchian Channel works very well with the Average-True-Range indicator. Let me pull out this ATR indicator. We'll use the default settings, as well. I don't have to be too fancy on this. I like to look at the weekly chart. The thing that I like to look for is to see low volatility in the markets. I want to see that the ATR value is at multiyear lows. This means that the ATR value over the last two or three years, this is the lowest level. This is what I'm looking for.
If you want to learn more, you can go down to my website TradingWithRayner.com, and scroll down to the bottom, and you can see these two trading guides: The Ultimate Trend Following Guide and The Ultimate Guide to Price-Action Trading. If you want to learn how to ride massive trends in a market, go and download this guide over here, the trend-following guide, because I'll share with you practical trading strategies and techniques to ride massive trends.
If you want to learn more about price-action trading to better time your entries and exits you can download this Ultimate Guide to Price-Action Trading. Both of them are completely free. Just come down to my website, TradingWithRayner.com, click on this blue button, and I'll send it to your email, for free.
Thanks for watching!
FOLLOW ME AT:
Facebook: https://www.facebook.com/groups/forextradingwithrayner
Twitter: http://www.twitter.com/rayner_teo
My YouTube channel: http://bit.ly/2EFg5VN
Sike!!! Even tho you didn't make this video I believe you're strategy!!! I've been watching your video ever since it actually helps me a lot. Hope to be noticed! Good job and God Bless!!!
Hi Theo
Thanks for these 3 tips using DC
I'm wondering if this indicator is still relevant (5 years after this video) as the markets particularly the forex seem to be less and less in a trend structure?
Thanks in advance for your enlightments
You have now 1.79 subscription for a reason. You are excelent . Big thanks , got a lot out from this video in 8 minutes.Please keep up this quality chanel.👍👍👍
what kind of condition triggers an alert in tradingview? which I should use with donchian
Crossing
Crossing Down / Crossing Up
Greater Than / Less Than
Entering Channel / Exiting Channel
Inside Channel / Outside Channel
Moving Up / Moving Down
Moving Up % / Moving Down %
The great one
Excellent sir
I like your style.
Iv just learnt how to set this up the ribbon is great 👍
donchian channel for weekly chart only?
Maestro, muchas gracias. The most excellent explanation. Thank you so much. I love your channel by the way.
Hi Rayner. Is there an email I can reach you on. I have a few questions for you. Thank you for all the great info.
Very clear,
Thank you, donchian channel useful to detect false signal.
Thanks brother,,, good info abt Donchain channel,, where from you?
What is the compounded rate of return if someone had used this method over last 20 year period? I don't think it could beat market average. This system worked well and when a technical system works well more people use that and soon or later that system stops working.
Appreciate this content!
Hi
Can i use it in intraday
hello
i'm not into swing trade, but if i ever start, i'll remember this video, thx
Very informative as always thanks❤🙏 Brother
Thank you Rayner, after watching this for the 10th time. I'm ready to apply it right now >:D !
Thanks
thank youuuuuuuuuuuuuuuuuuu
Wht is The Time Frame of the Chart
can you show also a live trading example? thanks
bro if we follow donchian channel it seems to be buy high sell low then how can we take profits
Can we use this indicators for Intraday ? In 15 mins time frame ? Pls confirm sir..?
Bullshit, to those who later visit this video: Oil plunged so low was because of Covid, in other word, fundamental news. Nothing technical.
I've been binge watching your videos for the last 2 days. I'm think I know enough to do something stupid!
Thanks Rayner!! Great videos & I love the multiple examples. Invaluable information!