IVT Profit Channel Metatrader 4 Indicator

IVT Profit Channel OR Donchian band calculate support and resistance levels based on the high/low price of x periods. They are a great tool for trading breakouts in the forex market.

Donchian Bands use a very simple formula to draw the upper and lower band.

Upper Donchian Band: High price of x periods.
Lower Donchian Band: Low price of x periods.

Trading Rules

BUY: Price breaks and closes above the 20-period upper Donchian Band.
SELL: Price breaks and closes below the 20-period lower Donchian Band.

See the illustration below for clarification of the entry rules.

EUR/USD 1 Hour Chart Example