Donchian Bands Indicator
Classic channel breakout indicator (1930s) · 20-period default · Free · MT4
About Donchian Bands Indicator
The Donchian Channel/Bands Indicator, based on the classic tool developed by Richard Donchian in the 1930s and documented at mt4collection.com, best-metatrader-indicators.com, and mql5.com (Code Base), is a channel indicator for MetaTrader 4 composed of three lines: the upper band (highest price over the lookback period), the lower band (lowest price over the period), and a middle band (the average of the two).
A break above the upper band typically triggers a buy signal, while a break below the lower band triggers a sell signal. The default lookback period is 20, though it can be manually adjusted to suit different trading styles.
- Platform: MetaTrader 4
- Origin: Richard Donchian, 1930s
- Structure: Upper band, lower band, middle band (average)
- Default period: 20 (adjustable)
- Signals: Break above upper = buy, break below lower = sell
- Price: Free
- Source: mql5.com/en/code/11162 · Donchian Channel Indicator
Key Features
✓ Decades-proven methodology (since the 1930s) — a foundational breakout/channel tool
✓ Free and open-source (MQL5 Code Base)
✓ Simple, adjustable period to fit different trading timeframes and styles
⚠ Breakout signals can produce false entries in choppy/ranging markets — combine with trend confirmation