Donchian Channel Width as a Range and Volatility Measure

Summary

The document describes an oscillator that plots the width of a Donchian channel in a separate window. It defines width as the highest high minus the lowest low over a selected lookback period, providing a simple measure of the price range covered by that window.

Three settings control the calculation and display: the lookback period, whether to include the current bar, and whether to show values in points. The document illustrates the indicator alongside a Donchian channel, but supplies no performance testing, trading rules, or evidence that the measure predicts future movement. Its value is descriptive: users can observe changes in recent range size, while interpretation depends on the instrument, timeframe, and chosen period.

Key ideas

• Donchian width is the lookback-period high minus the lookback-period low.
• The indicator displays channel width in a separate chart window.
• Users can choose whether calculations include the current bar and whether values appear in points.
• The document presents no tested entry rules or evidence of predictive performance.

Tags

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