Donchian Breakouts with ATR-Scaled Support and Resistance Slopes

Summary

This strategy builds moving support and resistance guides around Donchian channel extremes. When a new high or low extends the channel, it records a candidate pivot; the corresponding guide then advances or retreats using a slope scaled from an ATR band’s width. An optional mirror mode ties the opposite guide to the Donchian midpoint. The channel midpoint and the guides provide breakout and exit references.

A close crossing above the upper guide opens a long position, while a close crossing below the lower guide opens a short position when short mode is enabled. Longs can close below the lower guide or prior midpoint; shorts can close above the upper guide or midpoint. The script also marks unusually large candles relative to ATR bands. It specifies commission, slippage, position sizing, and a selectable test period, but the document gives no strategy report results. The slope multiplier and channel settings are exposed parameters, and no evidence establishes performance across instruments or periods.

Key ideas

• Donchian channel extremes identify pivot highs and lows that reset the candidate support and resistance guides.
• Guide slopes are scaled using ATR band width and a configurable multiplier.
• Closing-price breaks of the guides trigger long or short entries.
• Opposite guide breaks or midpoint crossings can close positions.
• The script specifies trading costs and a test window but reports no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.