DALE    -	  !DONCHIAN PRICE CHANNELS
!Coded by Rich Denning 2/13/05

!Donchian Channels were introduced by Richard Donchian, a pioneer in the field of trend following.
   ! The Donchian Channel is a simple trend following breakout system. The Donchian Channel works 
   ! well in trending markets, but doesn't work well in a sideways channel. The signals derived from the
   ! Price Channel are based on the following basic rules:

   !    * When price closes above the Donchian Channel, buy long and cover short positions.
   !    * When price closes below the Donchian Channel, sell short and liquidate long positions.

   ! The Donchian Channel indicator is not meant to catch tops or bottoms, only trends. 
   ! Trend traders may want to extend the standard 4 week period to 8 weeks in order to wait 
   !  for significant trend signals, while others may shorten the period to a more sensitive 1 or 2 
   !  weeks for liquidation purposes.

! Upper Band = Highest high in last n bars
! Lower Band = Lowest low in last n bars
! Middle Band = (Upper Band + Lower Band) / 2

! This indicator is set to run in daily mode, adjustments may be necessary for other time frames.

HH10 	is HiVal([high],10,0).      !Two week 
HH20 	is HiVal([high],20,0).      !Four week - classic setting
HH40 	is HiVal([high],40,0).      !Eight week

LL10 	is LoVal([low],10,0).       !Two week 
LL20 	is LoVal([low],20,0).       !Four week - classic setting
LL40	is LoVal([low],40,0).       !Eight week

!WITH ONE DAY OFFSET:
HH10x1 	is HiVal([high],10,1).      !Two week
HH20x1 	is HiVal([high],20,1).      !Four week - classic setting
HH40x1 	is HiVal([high],40,1).      !Eight week

LL10x1 	is LoVal([low],10,1).       !Two week 
LL20x1 	is LoVal([low],20,1).       !Four week - classic setting
LL40x1	is LoVal([low],40,1).       !Eight week

UpDon	is HH20.		       !Change the HHxx function to change the time frame.
LwDon	is LL20.		       !Change the LLxx function to change the time frame.
MdDon	is (UpDon + LwDon) / 2.

! Plot the above three UDF as custom indicators single line indicators on the upper chart panel.
! Each one must be added as a separate indicator.

! Note: the upper channel could use a different time frame than the lower channel.
! By adding an offset of a day the prior day's value could be used as a stop   Rule Libraryÿÿ  	 CCodeViewš    ÿÿÿÿ            00:00