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Donchian channel calculator

The highest high and lowest low of the last bars, and whether the price just broke out.

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The bars

Oldest first. Three numbers per bar, bars split by semicolons: 2358 2328.8 2333.5; 2334.5 2285.6 2301.4
20 and 55 are the classic breakout periods.
Usually half the channel or less.

The channel

No breakout: the last bar stayed inside the 20-bar channel. The channel runs from 2,260.90 to 2,363.50.

The last close
2,319.40, 57% of the way up the channel; the middle is 2,312.20. The channel is 4.44% wide.
Entry levels
A buy stop just above 2,363.50 or a sell stop just below 2,260.90 trades the next 20-bar breakout.
Exit levels
The shorter 10-bar channel, 2,271.00 to 2,363.50: a long is often closed below its low, a short above its high.
Read it with care
Many breakouts fail and the few that run have to pay for them; a channel rule needs a small risk per trade and the patience for long losing runs.

Education only, not investment advice. The answer comes from the numbers you typed in, not from your account or the market. Simulated results are hypothetical and have limits: real trading has slippage, gaps, changing results and emotions. Trading leveraged products can lose money quickly, including all of it. Risk warning

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Educational only, not financial advice; trading involves risk.

The oldest breakout rule

Richard Donchian's channel is the highest high and the lowest low of the last 20 bars, not counting the current one. A new high above the channel is a breakout up, a new low below it a breakout down. Trend followers have used it for decades: enter on the breakout, exit when the price crosses a shorter channel the other way.

The rule wins on a few long trends and loses small on many false breaks, so the size of each trade decides whether you survive the losing runs. Size the trade with the position size calculator, set the stops for a range with the range breakout planner, and measure the bars with the ATR calculator.

Not advice. Arithmetic on the bars you type; a breakout is not a promise of a trend.

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