690# Donchian Channel Ping Pong Strategy
Donchian Channel Trend Reversal Strategy
Buy and Sell with Box
Submit Maximo Trader
Donchian Channel Ping Pong Strategy is a trend reversal strategy based on Donchian Channel and on a price action box. What is this strategy looking for? Price changes on Donchian channels filtered by the appearance of a price action box. So what are the conditions of entry: the price must exit or notch the channels but also a box price action must be formed. The entry timing is given by the appearance of an arrow in the opposite direction to the channel.
The established conditions are able to filter out some noise so as to make the system a profitability increase of 50%.
This strategy is simple and clear and works well on all time frames, so it can also be used for day trading.
Setup Strategy
Time frame 5 minutes or higher
Currency pairs:any
Metatrader 4 indicators:
Double SV,
Donchian Channel 20 periods,
Half trend buy and Sell amplitude 2.
Trading Rules Donchian Channel Ping Pong Strategy
Buy
Essential conditions
The price touches or exits the lower band.
While this is happening, a box must form.
When an arrow buy appears, buy at the close of the candle or the opening of the next.
Place initial stop loss at the next swing low.
Exit position at opposite arrow or with predetermined profit target with minimum ratio 1:1.2
Sell
Essential conditions
The price touches or exits the upper band.
While this is happening, a box must form.
When an arrow sell appears, sell at the close of the candle or the opening of the next.
Exit position
Place initial stop loss at the next swing high
Exit position at opposite arrow or with predetermined profit target with minimum ratio 1:1.2
Note: Do not enter position if a candle closes outside. the channels.
Examples of trades
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