Donchian Channels can be useful in visualizing the volatility of a market's price action. If the price is stable, the Donchian Channel will be relatively narrow. If the price has large fluctuations, the Donchian Channel will be wider.
Using the 20 day default period, a move above the channel signals a new 20 day high. Similarly, using a 20 week period, a move above the channel would signal a new 20 week high. Markets that continuously touch or exceed the upper channel line show strength, while conversely markets that continuously touch or break below the lower channel line show weakness.
Learn how Donchian Channels can improve your trading here.
Good afternoon and thanks for stopping by for the 1PM Afternoon Update.
Hello traders everywhere!
Adam Hewison here, co-founder of MarketClub, with your 1 p.m. market update for Tuesday, the 14th of June.
Okay, here's what's happening right now in the major markets ...
SP 500: -60. This market remains in a broad trading range with resistance coming in beginning at 1296 and 1305 and finally 1315 which represents a 62% Fibonacci retracement. Major downside support is at 1250.
Silver:-60. Currently this market is oversold, however it is in the state of flux with no clear trend. Using the Donchian Channels and the fact that this market is oversold, expect to see a bounce from current levels. Major Support at $34.00. Continue reading "Gold and silver are oversold... time to buy?"
... We have posted it on the Trader's Blog for you.
Last week's Technical Trading Strategies webinar is now available to watch "on demand" along with all of MarketClub's previously recorded presentations.
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The MarketClub Team
... that you can see upcoming MarketClub webinars as well as all of MarketClub's webinar archives all in one place?
MarketClub Webinar Schedule & Archives
Are you interested in attending MarketClub's next webinar?
Join us this Thursday, February 10th for MarketClub's Technical Strategies Webinar.
Join Adam as he covers several technical trading strategies including: the 52-week high on Friday rule, using Donchian Channels in a sideways market, using the "Trade Triangles" and MORE!
Whether you're looking to enhance your current strategy or implement a new one, this presentation will cover all bases. As always MarketClub's webinars are completely free, but registration is limited.
Click here to sign-up now!
We look forward to seeing you there,
The MarketClub Team
Over the past few weeks I’ve shown you video examples of how you can use three powerful, yet straightforward indicators – the Donchian Channel, Williams %R, and MarketClub’s Trade Triangles – in combination to quickly find and grab some not-too-shabby profits in sideways markets.
Today I’d like to take a closer look at one of them – the Donchian Channel – and how misusing it could sink your trading portfolio.
If you’re new to trading, today’s post is a must read.
Continue reading "The Danger of Donchian Channels – Never Swim Alone"