Suggestion to implement Donchian channel - breakout strategy
For the period using donchian channel (median line, the upper band and lower band), the rules are as follows:
1.1) Buy if the upper band is broken && OBV is averagely going up and making higher highs(consider 2 bar high and if OBV is above this then it is making higher highs) && Williams % is above or below(according to the user) a value(I want default value 80%).
1.2) Sell if the lower band is broken && OBV is averagely going down and making lower lows(consider 2 bar low and if OBV is below this then it is making lower lows) && Williams % is above or below(according to the user) a value(I want default value 20%).
1.3) If the middle line(upper+lower bands/2) is hit then where the close has happened take a trade in that direction and wait for targets as an upper or lower band, and if possible add rules that if this average is moving higher then only take buys OR moving lower then only take sells. NO other indicators are required here as this midpoint of upper and lower is algo level, so algos will sell/buy if the bar just touches a % range of this mid-line band and closes above or below it as per their rules.
2) SL in all cases is the previous 2-day lows.
3)Rules for re-entering or pyramiding are as follows:
3.1) Wait for the upper band to be constant OR moves down for at least a period of time(the default best is 3 days), then we can start re-entering trades.
3.2) Wait for the lower band to be constant OR moves up for at least a period of time(the default best is 3 days), then we can start re-entering trades.
3.3) New SL for all the trades entered before with this strategy should have 2 days low as SL.
4) TP will be when OBV reaches new lows( Say 2-day low) OR the trend line joining the last 2 two-days lows on OBV && Acummilation/Distribution_Indicator is already diverging && Volume is more than avg.(2 days period as default).
Screenshot:
https://privatebin.support-tools.com/?c5c83db3cde96230#WnxBzE9Iv4BUvDauNfGdrOvUrIyKg5lZPpKFDkH8xas=
Could you attach the indicator?
I attach the image so you don't get lost
Thanks