VR Donchian - improved Donchian channel

>Overview

The VR Donchian indicator is an improved version of the Donchian channel. Improvements have been made to almost all channel functions, but the basic algorithm and channel construction have been preserved. The Bala indicator adds a change in the color of the levels depending on the current trend - this clearly shows the trader a change in the trend, a flat. It was added the ability to inform the trader about the breakdown of one of the two channel levels on a smartphone, email, or in the MetaTrader terminal itself. Price tags have been added, which allow the trader to see the prices of the levels on the chart. The algorithm of the classic Donchian indicator has been optimized and accelerated due to the fact that the trader can set himself how many periods the indicator will calculate. The classic Donchian indicator calculates the entire history available in the MetaTrader terminal, which greatly loads The MetaTrader terminal with mathematical calculations. The VR Donchian indicator only calculates the amount that the trader sets in the setup, which reduces the load on the MetaTrader terminal by tens or hundreds of times.

Donchian Channel is a channel indicator developed by Richard Donchian. The Donchian channel is considered one of the most accurate channels. The classic Donchian channel indicator is built on the tops of local highs and lows. it is a variation of the breakout rule of the trading interval.

>Advantages

• One of the most accurate indicators showing channels.
• Ability to receive messages via Alert on the screen, Push message to your smartphone and email message.
• Suitable for any financial instruments, Forex, Crypto, CFD, Metalls.
• The indicator is not redrawn.
• Easy to install - just drag the mouse over the chart.
• It works in the strategy tester, on demo accounts, and on real accounts.
• Suitable for both beginners and professionals, the indicator is based on classic trading rules.
• A large number of settings that help you customize the indicator to Your liking.
• The indicator can transmit the signals by standard methods via buffers and using global variables of the terminal.
• There are two versions for the MetaTrader 4 and MetaTrader 5 terminal.

This indicator is considered one of the most effective tools for determining a trend or flat, as well as the overall current trend in the market. The indicator works according to the main classical rules for determining the trend.

The rule of trend detection:

If a new local high is higher than the previous one and a new local low is higher than the previous one, it is considered that the trading instrument is in an uptrend.

If a new local high is lower than the previous one and a new local low is lower than the previous one, it is considered that the trading instrument is in a downtrend.

If we cannot apply any of the two rules described above to the current trend it is considered that there is no certainty on the trading instrument or flat on the other.

>Operation algorithm

The indicator's algorithm is simple and reliable. The indicator calculates local highs and local lows and draws lines based on the values found. When the price builds a new high, the indicator takes into account the new value and displays the line with the new high.

>Profitability

To calculate the approximate profitability of the indicator, a simple trend calculation function was built into the program code. This function can be enabled in the indicator settings ( ! Show profitability statistics). This function works once and calculates the number of periods specified in the settings (the Number of displayed periods). In order to calculate the effectiveness of the calculation, the level breakdown strategy is used. If the price rises and breaks through the upper level, the indicator counts the trend until the reverse signal appears. For downtrends, the price is considered to fall below the level, and the reverse signal is considered to be the end of the trend. The screenshot shows the yield of the EURUSD currency pair the indicator is launched on an hourly timeframe with a period of 28.

In the figure, the yield on the rising trend was almost 6,500 points, and on the descending one 7,500 points.

>Recommendations

• The longer the period in which you use the indicator, the more accurate its readings will be and the larger the trend (in size) can be determined.
• Sharing the indicator with Your trading strategy will increase the probability of success and reduce the likelihood of losses.
• Avoid moments of uncertainty and trading at the time of news release.
• Select the indicator period based on the last uncertainty zone. Set such a period that there are no false trend indications in the zone of uncertainty.
• Use multiple copies of indicators with different periods, such as the period of the first indicator 21 and the period 48 of the second indicator.
• Buy when the upper level is broken and sell when the lower level is broken, good signals are obtained when the price breaks through several lines of different indicator periods, at the same level.
• Do not use statistics yield constantly, the statistics of the yield recommend that you use only in the selection period or for analyzing new financial instrument.

>Settings

• Indicator period - the number of periods to search for highs and lows.
• Number of displayed periods - the number of periods to display on the chart.
• Show price tags - show price tags on against each of the lines.
• ! Show yield statistics - displays statistics for a currency instrument. It is recommended to use it only when calculating a new financial instrument.

• Color of the top line when increasing
• Color of the top line when lowering
• The thickness of the top line
• The style of the top line

• The color of the middle line with increasing
• The color of the middle line by lowering
• The thickness of the middle line
• The style of the middle line

• Color of the bottom line when increasing
• Color of the bottom line when lowering
• The thickness of the bottom line
• Bottom line style

• Push Notification to your smartphone - a button to the chart to enable Push messages.
• Email Notification - adds a button to the schedule to enable email messages.
• Alert - notification in the terminal-adds a button to the chart to enable Alert messages.
• Globals - Create and maintain global variables-creates and fills in global variables that can be used to get prices of levels in another indicator or expert Advisor.
• Text size in notification buttons - the size of icons in notification buttons.
• Notification button size - the size of the notification buttons.
• The angle of placement of the buttons - make a button for notifications in the selected corner.
• Shift buttons on the X - axis-Moves the notification buttons on the x-axis.
• Y-axis offset - Moves the notification buttons along the y-axis.

>Video

>Updates

20.030 from 23.03.2020g

• Program code.

• Ability to set the number of displayed periods - the fewer periods displayed, the faster the indicator works.
• Ability to receive signals for other programs via global variables.
• You can choose one of three methods for notifying traders: Push, Alert, and E-mail.

• Duplicate price tags.
• Notifications are triggered.

>Planned

At the moment, there are no plans.

You can suggest an idea or revision in the section "Reviews and discussions".

>What's in the archive

• VR-Donchian-RU.ex4 - program File in Russian
• VR-Donchian-EN.ex4 - program File in English

• VR-Donchian-RU.ex5 - program File in Russian
• VR-Donchian-EN.ex5 - program File in English

• VR Donchian RU.pdf - program File in Russian
• VR Donchian EN.pdf - program File in English

>FAQ

Question: Which timeframe is better to use for the VR Donchian channel indicator?

Answer: the most suitable timeframe for the VR Donchian indicator is the timeframe where the price goes a long distance after breaking through. The older the timeframe, the bigger the trend can be "caught", the smaller the timeframe, the smaller the trend will be. The author of the VR Donchian modification recommends using the indicator from the 30-minute time frame.

>Reviews and discussions

You can write a review, comment, or suggestion below