Donchian Channel Stock Screener

The Donchian Channel indicator is used to identify the high/low price levels over a specific period in order to understand trends, potential breakouts, and reversals in the market

3 minutes

This post focuses on customizable Donchian Channel factory scans, which can be edited, modified, or rewritten and then scanned using ChartAlert’s native stock screener or technical analysis scanner, namely the Basic Scanner and Advanced Scanner.

Display Donchian Channel (Price Channel) Values

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List symbols
Add Column Donchian Channel Low(20) as DCL
Add Column Donchian Channel High(20) as DCH
Apply to NSE

This scan performs calculations to determine and display the values of the Upper and Lower Donchian Channels over a 20-period period.

OPTION 1

Additionally, it has the ability to display the Middle Donchian Channel value and its corresponding width, as demonstrated below:

List symbols
Add Column Donchian Channel Low(20) as DCL
Add Column Donchian Channel Mid(20) as DCM
Add Column Donchian Channel High(20) as DCH
Add Column Donchian Channel Width(20) as DCW
Apply to NSE

OPTION 2

In many instances, the ChartAlert scripting language provides for shorter names or aliases. Here is an example of how such abbreviated names can be employed:

List symbols
Add Column DCL(20)
Add Column DCM(20)
Add Column DCH(20)
Add Column DCW(20)
Apply to NSE

Donchian/Price Channel Buy Signal

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List symbols where the Close has crossed above the Donchian Channel High(20)
Add Column Donchian Channel Low(20) as LDC
Add Column Donchian Channel High(20) as UDC
Apply to NSE

This scan identifies symbols that have recently experienced an event: their closing prices have crossed above the upper boundary of the 20-period Upper Donchian Channel. Additionally, it provides the values for both the upper and lower boundaries of the Donchian Channel.

Donchian/Price Channel Sell Signal

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List symbols where the Close has crossed below the Donchian Channel Low(20)
Add Column DCL(20) as DCL
Add Column DCH(20) as DCH
Apply to NSE

This scan identifies symbols where the closing price has recently crossed below the 20-period Lower Donchian Channel. Additionally, it provides the values for both the Upper and Lower Donchian Channels.

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List symbols where the DCW(20) has been increasing for the last 4 bars
Add Column Donchian Channel Low(20) as DCL
Add Column Donchian Channel High(20) as DCH
Apply to NSE

This scan identifies and displays symbols that exhibit a consistent upward trend in the 20-period Donchian Channel Width over the past 5 trading bars. It also provides the Upper and Lower Donchian Channel Values for reference.

For comprehensive insights into the Donchian Channel indicator, including how it’s constructed, how to effectively use Donchian Channels in trading, as well as an exploration of its advantages and limitations as an indicator, click here.

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