Mikula Forecasting Company

MarketWarrior: Donchian Stop and Reverse

The picture below shows the indicator Donchian Bands and has been setup to display as stop and reverse lines. When the price breaks above the upper line the trend is up and the bottom boundary works as a stop order. When the price breaks below the lower boundary the trend is down and the top boundary works as the stop order. This creates a very easy way to use the Donchian Bands.