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December 6, 2021
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December 6, 2021

How to Read Donchian Channel Signals

You can trade in the direction of a trend using Donchian Channels.

Watch the direction the channel moves in. As soon as the maximum price exceeds the maximum value of the channel, open a “buy” trade.

As soon as the minimum price falls below the minimum value of the channel, open a “sell” trade.

If the Donchian Channel narrows, the market is entering a flat. If the channel widens, then a trend movement is beginning in the market.

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