OPEN-SOURCE SCRIPT
Donchian Channel Clouds
For this indicator, I got inspired by this paragraph in an article on Investopedia:
"Donchian channels also make natural partners with another moving average indicator for a crossover strategy. The Donchian moving average middle line is likely to form the short-term average in these situations, although some have used a 20-day Donchian channel in conjunction with a five- or 10-day channel to exit a position before a consolidation eats into short-term profits."
The default is a 20-period Donchian channel with the middle line from a 10-period channel superimposed on it. Red for 20, green for 10. When 10 is over 20, the cloud between them is green; the cloud is red when 20 is over 10.
"Donchian channels also make natural partners with another moving average indicator for a crossover strategy. The Donchian moving average middle line is likely to form the short-term average in these situations, although some have used a 20-day Donchian channel in conjunction with a five- or 10-day channel to exit a position before a consolidation eats into short-term profits."
The default is a 20-period Donchian channel with the middle line from a 10-period channel superimposed on it. Red for 20, green for 10. When 10 is over 20, the cloud between them is green; the cloud is red when 20 is over 10.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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