Donchian Midline Pullback Zones

A Donchian channel gives an upper band (the highest high of the last N bars), a lower band (the lowest low), and, less commonly plotted, a midline halfway between the two. The midline is a rough measure of "value" for the current channel - a trend-joining entry classically wants to buy a dip toward that midline in an uptrend, or sell a rally toward it in a downtrend, rather than chasing the extreme band itself. This indicator draws the midline and shades exactly the zone that pullback would occupy: when the close sits above the midline (channel reads as up), the shaded strip runs from the midline down to the lower band, since that is the direction a pullback would travel before the next leg up. When the close sits below the midline, the shaded strip runs from the midline up to the upper band instead. The shading flips sides as the trend read flips, and never shades both halves of the channel at once - only the half that price would need to travel through to reach the midline from its current side. It is a visual aid for where to watch, not a signal generator: the indicator draws no entry arrows and issues no alerts. Notes and limitations - The trend read is a single test (close above/below/on the midline) recomputed independently on every bar - it is not a filtered or confirmed trend signal, and it can flip on minor midline crossings during a choppy range. - When the close sits exactly on the midline, no zone is shaded for that bar. - Needs InpChannelPeriod bars of history before the first bar is plotted. - Does not repaint - each closed bar's channel and zone are fixed once computed and do not change as new bars form, aside from the channel naturally shifting forward with the window.

Indicator · MT5 · v1.0 · Free

Tags: Channels & Envelopes · Trend · MT5 Indicator · MQL5 Source Code

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