Sort Of Double Donchian Indicator

Sort Of Double Donchian Indicator

Sort Of Double Donchian Indicator For MT4 plots an additional channel to the classic Donchian channel for additional confirmation of forex trading signals.

The Sort of Double Donchian indicator for MT4 plots two channels based on the high and low of the price. The two upper and lower channel levels act as an additional support and resistance. So, forex traders can use this indicator to confirm channel breakout.

The indicator is well suited for new forex traders as it provides additional confirmation for channel breakout. Similarly, they act as double layer of support and resistance and helps new traders. However, advanced forex traders can use this indicator for early entry or technical analysis.

Sort Of Double Donchian Indicator For MT4 Trading Signals

The indicator plots an upper red and lower green channel with a mid gray line. Additionally, it plots an upper dotted red line and a lower dotted green line and form part of the indicator. The best trading strategy is to aggressive entering markets once the price crosses the mid line. However, new traders can enter the markets once price has breached both the upper or lower channel lines.

If the price crosses the mid line, traders should place a buy trade with a stop loss below the lower channel. Traders can either book profits once the price hits the upper channel or hold the position and ride the trend until the price breaches the mid line.

A similar trading strategy can be followed with a sell trade if the price breaks the mid band to the lower side.

Another important strategy is to wait till the price breaks both upper bands to enter a buy trade. Traders can place a stop below the mid line and exit with a good RR. Traders can follow a similar strategy with a sell trade if price breaks both the lower bands.

Conclusion
In summary, the Sort of Double Donchian indicator for MT4 helps new forex traders for additional confirmation of the classic Donchian channels.