Advanced Donchian Channels displays future donchian channel values based on the current information on the chart. It displays a normal donchian channel at the specified user length with the future values extending from the current bar. Depending on the direction of price movement, these values do not repaint. It is known when it does and does not repaint, and the actions are normal. See below for more information.
In a down trend, when the price is making new lows, the future "channel low" value will update every time the low is broken. The mean will also update, since the mean is the average of the channel high and channel low. In a downtrend, the "channel high" value is concrete . It will not update until the high is broken. Reverse these examples for uptrends.
Q; How does it know the future values? A: Consider This: If we are below the current highest high, going down (aka: not setting new highs), the donchian channel "high" value will create a flat top, the flat top will start to decrease after we go further than our specified length. This is because the highest high within our specified length is no longer what it was previously. This action of time decay is a consistent movement of donchian channels . Because of this I am able to calculate these values before the current bar actually reaches them.
The indicator calculates the current length donchian channel at the current bar and then for every future bar up to your length specified it subtracts 1 from your length, calculates and displays the values accordingly. The farthest future value is 1 length and the current bar is your specified length.
VALUES WILL ONLY BE UPDATED WHEN THE CHANNEL HIGH OR LOW IS BROKEN. If price stays within the channel, all the future channel values will become solidified when the time reaches them.
This is not a gimmick, This data is accurate and can be used to help see future price trends
This chart should assist in visualizing what data you are seeing in this indicator.
Enjoy!
เอกสารเผยแพร่
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- changed max length to 166, this is due to the pinescript lines limited to 500, 500/3 = 166. - changed default length to 20.
Hi Sam, can you update this to multiple period future Donchian channel ?
SamRecio
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@langbam, If you need multiple, just apply it to the chart more than once.
Charli_11
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Hi Sam, I added the advanced don channel to my chart but I don’t see a section labeled future. I have red, blue and a green line. Which one is the future? By any chance do you demo the script?
SamRecio
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@Charli_11, Future lines are the lines that extend into the future on your chart. You could also refer to the Chart in the description, or the cover chart of this post to understand which lines are the future lines.
Charli_11
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@SamRecio, I will take another look. It just seem there should be a color to reflect it. I may be able to do it in the settings.