OPEN-SOURCE SCRIPT
[KVA]Donchian Channel Percentage
"[KVA]The 'Donchian Channel Percentage' (DC%) indicator, developed for TradingView’s Pine Script Version 5, is a unique tool designed to measure the current price’s position within the Donchian Channel. The Donchian Channel, a popular indicator in technical analysis, is defined by the highest high and the lowest low over a user-specified period.
Key Features:
User-Defined Period: Users can customize the lookback period (default 20 periods), allowing flexibility in different trading styles and timeframes.
Channel Calculation: The upper and lower bounds of the Donchian Channel are calculated based on the highest high and lowest low over the chosen period.
Percentage Calculation: DC% quantifies where the current price lies within the channel, presented as a percentage. A value of 0% indicates the price at the channel's low, and 100% signifies the price at the high.
Visualization: The DC% is plotted as a line graph, providing a clear visual representation of the price’s relative position. The indicator includes horizontal lines at 0% and 100%, marked in red and green, respectively, to depict the channel's boundaries.
Market Analysis Tool: DC% offers insights into market trends and potential overbought or oversold conditions, making it a valuable addition for traders who focus on channel-based strategies.
Applications:
The DC% is particularly useful for identifying breakout scenarios and potential reversals.
Traders can use this tool in conjunction with other indicators to enhance their market analysis, especially in strategies that capitalize on price extremes within a defined range.
In summary, the Donchian Channel Percentage offers traders a simple yet powerful tool to gauge the current price’s position within a historical high-low range. Its adaptability across various assets and timeframes makes it a versatile addition to any technical trader’s toolkit."
Key Features:
User-Defined Period: Users can customize the lookback period (default 20 periods), allowing flexibility in different trading styles and timeframes.
Channel Calculation: The upper and lower bounds of the Donchian Channel are calculated based on the highest high and lowest low over the chosen period.
Percentage Calculation: DC% quantifies where the current price lies within the channel, presented as a percentage. A value of 0% indicates the price at the channel's low, and 100% signifies the price at the high.
Visualization: The DC% is plotted as a line graph, providing a clear visual representation of the price’s relative position. The indicator includes horizontal lines at 0% and 100%, marked in red and green, respectively, to depict the channel's boundaries.
Market Analysis Tool: DC% offers insights into market trends and potential overbought or oversold conditions, making it a valuable addition for traders who focus on channel-based strategies.
Applications:
The DC% is particularly useful for identifying breakout scenarios and potential reversals.
Traders can use this tool in conjunction with other indicators to enhance their market analysis, especially in strategies that capitalize on price extremes within a defined range.
In summary, the Donchian Channel Percentage offers traders a simple yet powerful tool to gauge the current price’s position within a historical high-low range. Its adaptability across various assets and timeframes makes it a versatile addition to any technical trader’s toolkit."
Script de código aberto
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Script de código aberto
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.