Features

• A straightforward implementation of the Donchian channel blended with some useful customizations.
• Cross-Timeframe ability. You can have a Donchian channel from H1 on a 15 min. timeframe.
• Alerts are provided when the price touches a band.
• It displays the price tag with each band.
• Ability to customize the alerts for each band.
• All Metatrader alerts are included.

Input Parameters

•  Channel Period: An integer value to select the n period of the Donchian channels.
• Channel Timeframe: You can choose a custom timeframe. For example, you can have a Donchian channel from M30 on M5 timeframe. 
• Draw Price Tags: If true, price tags will be plotted for each band. 
• Upper Band Alert: Alert generated when price touches the upper band.
• Middle Band Alert: Alert generated when price touches the middle band. 
• Lower Band Alert: Alert generated when price touches the lower band. 

Applications of Donchian Channel Indicator 

• You can use the Donchian channel to detect reversals, breakouts, newly formed trend, and stop-loss trailing.
• One can also use the Donchian channel to design mean reversion trading strategies.

Difference between Donchian Channel and Bollinger Bands

Bollinger Bands are created using a simple moving average for n period plus/minus the price's standard deviation. In contrast, Donchian channels are created using the highest-high and lowest-low over the last n period.