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Hello…how are you? Today In article. I am going to talk about the god of trend indicators i.e Donchian channel.
Donchian channel alone is a great indicator however if you want to reap much better results from the same you need to combine it with other trend indicators like the RSI & more.
How to combine RSI and Donchian channel at Pocket Option
Naturally, you need to log in first to your Pocket Option account. Just enter the email, password, & hit login. Once you logged in you will land on the Pocket Option dashboard. Click on the indicator button and search for the name RSI and Donchian channel in the menu.
If you don’t like the colour of the indicator you can always change them. Just, click on the pencil icon to change it.
The best time to place buy trade
When the RSI line reaches the oversold level and the price is near the lower band. It indicates that the price is going to reverse in an uptrend. here we can place a buy trade at a long time frame. However, If you want to place a short time frame trade you need to wait for the price to cross the middle band.
The best time to place a sell trade
Similarly, When the RSI line is near the overbought level with price at the upper band this indicates that the trend is about the reverse into a downtrend and here we can place a sell trade at a long time frame. However, If you want to place short time frame trade you need to wait for the price to intersect the middle band.
RSI and Donchian channel are the two most powerful indicators and trading with their combination is quite easy. You just need to remember the basic rules of these two indicators. This strategy can easily be applied to assets with good volatility like EURGBP, EURUSD, GBPUSD & more.
I will highly suggest you try this trading strategy on the Pocket Option demo account. It is a good way of practising a new strategy without any cost. You will get free virtual chips which will help you to grow your trading career. Do comment below your thoughts about the strategy and please share this article on your social media account if you find it helpful. I wish you a very happy trading career ahead.