Donchian Channels plot the highest high and lowest low over a specified period, forming a simple but effective volatility envelope and breakout system that powered the legendary Turtle Trading strategy. They are widely used in forex and crypto for trend-following breakout strategies. Compare Donchian Channels with Bollinger Bands and Keltner Channels in our indicator guide library.
Upper Channel = highest high over N periods. Lower Channel = lowest low over N periods. Middle Line = (Upper + Lower) / 2. Default period is 20. Price breaking above the upper channel signals a potential new uptrend; breaking below the lower channel signals a potential downtrend.
Bollinger Bands plot a moving average with upper and lower bands set at 2 standard deviations, expanding during high volatility and contracting during low volatility to create actionable squeeze and breakout signals. The Bollinger Squeeze is especially powerful when combined with <a href="/academy/indicators/keltner-channels" class="text-primary hover:underline">Keltner Channels</a> in the TTM Squeeze setup, a favourite of professional traders. Pair Bollinger Bands with the <a href="/academy/indicators/rsi" class="text-primary hover:underline">RSI</a> to filter false signals and confirm <a href="/guides/trade-breakouts" class="text-primary hover:underline">breakout entries</a>. Set them up on <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView</a> for real-time alerts and multi-timeframe analysis.
ATR measures market volatility by calculating the average range of price bars over a specified period — it is essential for position sizing, stop-loss placement, and identifying volatility shifts. Use our <a href="/tools/calculators/position-size-calculator" class="text-primary hover:underline">position size calculator</a> to convert ATR readings into proper trade sizing instantly. Read the <a href="/guides/use-stop-loss-orders" class="text-primary hover:underline">stop-loss guide</a> and the <a href="/guides/calculate-position-size" class="text-primary hover:underline">position sizing guide</a> to master ATR-based risk management across every market. ATR adapts to any asset — apply it in <a href="/market/crypto" class="text-primary hover:underline">crypto</a>, <a href="/market/stocks" class="text-primary hover:underline">stocks</a>, and <a href="/market/forex" class="text-primary hover:underline">forex</a> for volatility-adjusted trading.
Keltner Channels plot an EMA with upper and lower bands based on <a href="/academy/indicators/atr" class="text-primary hover:underline">ATR</a>, producing smoother envelopes than <a href="/academy/indicators/bollinger-bands" class="text-primary hover:underline">Bollinger Bands</a> — and the two are frequently used together for the TTM Squeeze setup. This combination identifies low-volatility compression zones that precede explosive <a href="/guides/trade-breakouts" class="text-primary hover:underline">breakout</a> moves in any market. Apply Keltner Channels on <a href="/tools/platforms/tradingview" class="text-primary hover:underline">TradingView</a> and overlay Bollinger Bands to spot squeeze conditions with a single glance.
Price Envelopes plot fixed percentage bands above and below a <a href="/academy/indicators/simple-moving-average" class="text-primary hover:underline">Simple Moving Average</a>, creating a straightforward volatility channel for identifying overextended price moves and potential reversal zones. They are among the simplest band indicators available and work well in ranging <a href="/market/forex" class="text-primary hover:underline">forex</a> and <a href="/market/stocks" class="text-primary hover:underline">stock</a> markets. Compare Price Envelopes with <a href="/academy/indicators/bollinger-bands" class="text-primary hover:underline">Bollinger Bands</a> in our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> to decide which suits your style.