# Donchian Channels (DC) Donchian channels: the highest high and lowest low of the last bars and their middle, a classic breakout channel. ## How to read it - A close above the upper band is a new N-bar high, a breakout signal. - A close below the lower band is a new N-bar low. - The middle line can serve as a trend filter or trailing exit. ## Key settings - Period 20, offset 0. - Line width and background opacity. ## Good to know - Drawn on the price pane, over the candles.