What is the Donchian Channel?

The Donchian Channel is a technical indicator that helps traders analyze market trends and make decisions. It consists of an upper and lower boundary, which are based on the maximum and minimum prices over a certain period. These boundaries create a kind of "corridor" in which the asset's price resides. When the price moves beyond the channel's boundaries, it signals a potential trend or reversal. The Donchian Channel is popular among cryptocurrency traders as it allows for effective tracking of short-term market changes and making timely decisions.