Price Channel
The Price Channel or Donchian's Four Week Rule is a simple and effective trend following, channel breakout system.
Overview
Channel breakout systems were shown by research to be one of the top trading systems to generate significant profits
* Developed as the 4 Week Rule by Richard Donchian, originally for commodity trading
* Can be used on daily, weekly and monthly charts
Louis Lukac's research from 1975 to 1986 compared 23 trading systems. Moving averages and channel breaklouts came out as the top performers and Lukac suggested a channel breakout as the best starting point for technical trading. (Lukac, Louis; The Financial Review, November 1990).
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Price Channel
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