Decoded Intelligence Signal
Donchian Channels
intermediate
technical_analysis
Verified: May 27, 2026Lexicon Core Definition
A breakout channel indicator with three lines: upper band (highest high of N periods), lower band (lowest low of N periods), and middle line (average of upper and lower). Unlike volatility-based channels (Bollinger, Keltner), Donchian Channels display factual price extremes — a breakout above the upper band means price has exceeded every price traded in the lookback period.
Analysis Breakdown
A breakout channel indicator with three lines: upper band (highest high of N periods), lower band (lowest low of N periods), and middle line (average of upper and lower). Unlike volatility-based channels (Bollinger, Keltner), Donchian Channels display factual price extremes — a breakout above the upper band means price has exceeded every price traded in the lookback period. Full explanation coming soon when Journey 14 content is ingested.