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>From John Hill's book, "The Ultimate Trading Guide".
"Donchian Breakout
If you approach the market from a long-term standpoint, this envelope
indicator should be right up your alley. Richard Donchian popularized this
method back in the 1960's. This indicator involves two lines that are
plotted above and below the market, similarly to Bollinger bands. The top
line represents the highest high of n days back (or weeks) and conversely
the bottom line represents the loweest low of n days back (or weeks).
Richard Donchian felt if price penetrated either band then a trend was fully
underway; buy on strength and sell on weakness."
BobR
----- Original Message -----
From: <CRLeBeau@xxxxxxx>
To: <realtraders@xxxxxxxxxxx>
Sent: Tuesday, October 17, 2000 4:03 PM
Subject: [RT] Donchian Channels - need definition
> I seem to recall seeing some references recently to Donchian "Channels".
> Although I am familiar with most of Donchian's work, I don't recall the
term
> channels being used to describe it. Could anyone enlighten me as to
exactly
> what a Donchian Channel is?
>
> Many Thanks.
>
> Chuck Le Beau
>
>
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>
>
>
>
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