Donchian Middle Band Crossover

Donchian Middle Band Crossover is trend following forex trading system that closely monitors the market momentums with multiple trade filtering tools in order to generate trade signals with the higher probability of success. Newbie traders may get puzzled experiencing too many indicators at the chart but once these tools are mastered, trading could get much easier than ever.

Donchian Middle Band Crossover fits great with all sorts of timeframe charts within the metatrader4 trading platform. Besides, this system can be applied to trade all kinds of forex currency pairs around the market.

Donchian Middle Band Crossover Overview

After the installation of Donchian Middle Band Crossover at the MT4 terminal, your trading chart will appear like the following image:

Donchian Middle Band Crossover Overview

Also Read: Best Forex Contrarian Strategy

Donchian Middle Band Crossover Anatomy

Donchian Middle Band Crossover Anatomy

  • Super Signal V3: This indicator defines the possible swing level of the market and generates he trade signals using up/downward arrows. A green upward arrow below the price bar signals the buy entry from the swing low of the market. Contrarily, a red downward arrow above the price bar indicates the sell entry from the swing high of the market.
  • NonLag MA Lnx: Used to signal the market trends by changing its color. It is blue when the trend is bullish and turns yellow when the market is in the bearish thrust.
  • Price Channel ZigZag V3: Price Channel ZigZag V3 measures the possible length of each momentum of the price movements. This indicator helps traders to determine their Take Profit(TP) levels against the market entries.
  • Donchian Channel + ATR: It plots the dynamic support/resistance levels of the market. These levels change their positions based on current price action changes thus helps traders to update their TP or SL positions whenever required.
  • Trend Lines Lnx: Trend Lines Lnx helps you to define any possbile trend channels existing at the current chart. These channels are plotted on an automatic basis thus you’ll never need to bother drawing them manually at the chart.
  • RSI X2: An upgraded version of the Relative Strength Index which is used to identify the overbought/oversold conditions of the market. Its value rises above 70 means the market is in the overbought condition and moves below 30 levels to represent the oversold condition of the market.
  • Elliot Oscillator: Elliot Oscillators signals both the existing market momentums and its change of the directions at the same time. It turns positive means the momentum is bullish and turns negative when the momentum enters into the bearish mode. However, The Elliot bar turns red means market may turn bearish in the near future and a green bar appears to signal a possible bullish run of the market.

Generally Accepted Use of Donchian Middle Band Crossover

Buy Conditions

Donchian Middle Band Buy Conditions

  • Super Signal V3 plots an upward green arrow below the price bar
  • Price Channel ZigZag V3 pointing upwards
  • NonLag MA Lnx turns blue
  • Price is supported by the lower Donchian Channel + ATR
  • RSI X2 value remains near its 30/oversold level
  • Elliot Oscillator is positive
  • Buy triggers when all of the above conditions are met
  • Set stop loss below the low of the lower Donchian Channel + ATR
  • Exit long/take profit whenever Elliot Oscillator bar turns red 

Sell Conditions

Donchian Middle Band Sell Conditions

  • Super Signal V3 plots a downward red arrow above the price bar
  • Price Channel ZigZag V3 pointing downwards
  • NonLag MA Lnx turns yellow
  • Price is resisted by the upper Donchian Channel + ATR
  • RSI X2 value remains near its 70/overbought level
  • Elliot Oscillator is negative
  • sell triggers when all of the above conditions are met
  • Set stop loss above the high of the upper Donchian Channel + ATR
  • Exit short/take profit whenever Elliot Oscillator bar turns green.
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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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