TRADING GLOSSARY
Donchian channel
A Donchian channel plots the highest high and lowest low over a chosen number of periods, usually with a midpoint line. It shows the recent price range and is commonly used to study breakouts, although moves beyond earlier boundaries can fail.
EXAMPLE
On a hypothetical chart, the previous 20 bars have a highest high of 150 and lowest low of 130, giving channel boundaries of 150 and 130.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure