Donchian Channels
Donchian Channels are a trend following indicator used to plot the highest highs and lowest lows in price over a given period.
The idea is that the indicator offers a view of volatility in price - with the Donchian Channel being wider in periods of high volatility.
The indicator can also guide entry and exit positions because it offers a visual on when a price breaks out above the upper band of the channel and breaks down below the lower band of the channel.
![ed647913d7004d052faac03a3a867488b651c67b1579018316.png](https://images.stockopedia.com/node/ed647913d7004d052faac03a3a867488b651c67b1579018316.png)
The Donchian Channel settings use the previous 20 days for both the high and low prices. These parameters can be changed in the Donchian Channels settings modal.
![5fceea604b20e8e26a78cedc312f746af6df94841579018357.png](https://images.stockopedia.com/node/5fceea604b20e8e26a78cedc312f746af6df94841579018357.png)