Donchian Zig-Zag

Donchian Zig-Zag draws a line that bounces off the extremities of a Donchian channel, recreating the familiar zig-zag structure with one twist: you decide how fast the line travels. At the lowest bounce speed it lags price and rides trends in straight segments; at higher speeds it converges on the extremes quickly enough to take on a leading, projective character. Extended lines through its peaks and troughs add a further layer of support and resistance analysis.

How to Trade the Donchian Zig-Zag?

• Bounce Speed at 1: the line lags, and its cross with price can serve as an entry cue; the straight trajectory ignores retracements, which helps in holding a position through a trend.
• Bounce Speed above 1: faster convergence gives the line a predictive lean, sketching where the swing may be headed.
• Peaks and troughs: connect them with earlier highs and lows to project support and resistance. Approximate by nature, but a useful extra read.

This is an experimental take rather than a staple, one that aims to inspire unconventional approaches as much as to serve as a finished system. Treat its signals as a framework to test against your own process.

Donchian Zig-Zag Settings

• Length: the period of the Donchian channel; larger values flip the line less often, favoring stable trend identification.
• Bounce Speed: how quickly the line heads for the channel extremities. Higher values converge faster for earlier trend reads.
• Gradient (default On): applies a gradient color to the area between the extremities.
• Transparency: sets how visible that filled area is.

Frequently Asked Questions

Is the Donchian Zig-Zag leading or lagging?

How does it compare with Donchian MA Bands?

Is the Donchian Zig-Zag free to use?