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Donchian Channel Width

Trading Term

The width of Donchian Channels is a useful indicator for seeing the volatility of a market price. If a price is stable the Donchian channel will be relatively narrow. If the price fluctuates a lot the Donchian channel will be wider. This indicator is designed to detect trends: low values of the indicator signify that the price is moving sideways, while increasing value signify the start of a new trend.

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