what do donchian channels tell you 
donchian channels depict the relationship between the current price and trading ranges over set periods 2 three values build a visual map of price over time like bollinger bands signaling the extent of bullishness and bearishness for the chosen period the top line shows the extent of bullish energy the highest prices achieved for the period the middle line identifies the period s median or mean reversion price highlighting the middle ground the bottom line shows the extent of bearish energy and the lowest price for the period example of how to use donchian channelsimage by sabrina jiang investopedia 2021in this example the donchian channel is the shaded area bound by the upper green and the lower red lines using 20 days for the band construction over n periods as the price moves to its highest point in the last 20 days or more the price bars push the green line higher as the price drops to its lowest point in 20 days or more the price bars push the red line lower 