✓ Mathematical
◆ The PatternUpper = highest high of N periods.
Donchian Channels — Richard Donchian, the "father of trend following."
Upper = Highest High of N periods
Lower = Lowest Low of N periods
Middle = (Upper + Lower) / 2
Lower = Lowest Low of N periods
Middle = (Upper + Lower) / 2
Turtle Traders: Richard Dennis's famous experiment used Donchian channel breakouts:
• Buy when price breaks above 20-day high
• Sell when price breaks below 20-day low
• Exit at 10-day opposite channel
• Buy when price breaks above 20-day high
• Sell when price breaks below 20-day low
• Exit at 10-day opposite channel
Pattern bridge: Highest high and lowest low over N periods is the range (max-min) from descriptive statistics.