32# Reversal Trend with Donchian Bands

Submit by Manuel 09/12/2015

Reversal Trend with Donchian Bands is a trading system applied also at the renko chart. This strategy has two ways for trading, reversal and trending. You can choise how to trade.

Financial Markets:any.

Box Size 6 or higher.

Metatrader indicators:

Moving average linear weighted 10 period,

Moving average linear weighted 21 period,

Profit loss indicator,

Range indicator,

Donchian bands 30 period (sienna),

Donchian bands 60 period (purple),

Donchian bands 90 period (teal),

MACA alert (10, 30, 9).

Trading rules Reversal Trend with Donchian Bands

Trading in trend

Buy

When the price breaks up one of the Dochian bands go with a buy order if the MACD crosses upward.

Sell

When the price breaks down one of the Dochian bands go with a sell order if the MACD crosses downward.

Exit position

Make profit with predetermined profit target that depends by time frame (or box size).

Stop loss 5 pips above/below the 21 Moving averages.

Trading reversal

Buy

When the price broken the one of the lower Donchian Bands but the price retraces above the Moving averages, go with a buy order if the MACD crosses upward.

Sell

When the price broken the one of the upper Donchian Bands but the price retraces below the Moving averages, go with a sell order if the MACD crosses downward.

Make profit on the Donchian Bands.

You can apply this strategy also with range bar chart or median renko.

In the pictures Reversal Trend with Donchian Bands in action.