Hi Icarus . Yes I had high hopes for that one it really took off. The best Dibs trade for a while.

The DIBS Method... No Free Lunch continues

Oh hello again — Hello again. Just wondered what to do with my USD JPY trade from this morning's dib's trade. It's going to go back to break even. I feel like a child with a broken toy.

The DIBS Method... No Free Lunch continues

To Twoblink — As I understand it, those who trade the Donchian channels use this method of entry. I may be wrong, or I may be the only person that uses Donchian channels at all in which case I am right. image In the above example we can see ...

Donchian Channel and other breakout methods

Asian — Yep you're right. The times shown are BST + 1 or GMT + 2. So if you'd traded this long at the London open you'd have been ok. Only a TP1 and and two break evens though.

Donchian Channel and other breakout methods

If anyone would be interested I will post a classic Donchian trade. Nothing to do with the foregoing strategy.

Donchian Channel and other breakout methods

A perfect trade — image

Donchian Channel and other breakout methods

A (rare?) failure — image

Donchian Channel and other breakout methods

Sort of. — Well those are the figures that seem to work. I just use whichever is the larger of ATRX3. If it's bigger than the channel then you're in. Watch out for the next post (failure). I'd be interested in your comments.

Donchian Channel and other breakout methods

Chart — image

Donchian Channel and other breakout methods

Why not — Why not share the strategy first? With any luck programmers will will help with it if it is any good. Best of luck.

RSI Programming --I need help please

Define a break out... — Well I use the larger figure of the two. The thing is ATR(200) gives us a characteristic range for the pair and ATR(14) will usually be smaller because we are in a consolidation. I use it a bit for setting stop loss ...

Donchian Channel and other breakout methods

Yes I think it's good for what it does. Works on any pair with a reasonable spread and gets us out of the doldrums. I tend to sit out the odd false break out until something happens or price action tells me. I'd be interested to know if closing ...

Donchian Channel and other breakout methods

Not quite that simple... — Forgot to mention that I use the lower DC as a trailing stop, also I set TP1 as 1:1, TP2 is 2:1, TP3 is the DC, contiguessnessing TS.

Donchian Channel and other breakout methods

So this is how I trade it: — With the trend. I often use a 200ma to define the trend in any given time frame. I look at the height of the Donchian channel. In this case it compressesthe price within the range 13733 and 13825 which is our stop ...

Donchian Channel and other breakout methods

Chart with beans spilled on it — Oh yes this works allright. I should repeat that this is just one of my strategies. I don't sit around waiting for the price to consolidate. It's just an observation... image

Donchian Channel and other breakout methods

Bollinger Bands — Bollinger Bands are similar to Donchian channels but they are weird and curly and I'm not sure how they work. But something Bollinger Bands do is compress when the price is consolidating and signal a break out trade in the ...

Donchian Channel and other breakout methods

Hey pipmutt! — Let's get a few more dogs in here...

Donchian Channel and other breakout methods

Daily chart — Now have a look at the daily chart with support which Donchian channels have kindly drawn for us at 1.37 or thereabouts. Our area of interest is highlighted by the ellipse and is just above the support. So we probably want to go ...

Donchian Channel and other breakout methods

Chart: — image I have highlighted the area of interest where the price is consolidating or deciding what to do for several hours. I used to try and trade in these areas. Don't even bother asking why, it's too painful to recount.

Donchian Channel and other breakout methods

Turtles — Turtles spend weeks swimming for thousands of miles and get things done. This style of trading is not for me so I have been looking at Donchian channels on the 1 hour chart. Interestingly they plot all recent support and resistance ...

Donchian Channel and other breakout methods