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Donchian Cloud

LeafAlgo’s Donchian Cloud indicator serves as a powerful ally for traders seeking refined trend analysis, breakout trade opportunities, and advanced support and resistance insights. This multifaceted toolset harnesses a series of 5 Donchian channels, each meticulously configured with upper, lower, and basis lines across various lengths. Its primary function is to discern between ranging and trending markets, elegantly represented by the “cloud score,” an essential metric. With its prowess in trend analysis and breakout trade identification, this indicator stands as a pivotal aid for traders navigating the complexities of the market.


The Donchian Cloud unfolds its comprehensive analysis through five distinct Donchian channels, meticulously tailored with upper, lower, and basis lines across multiple lengths – 25, 50, 100, 150, and 200. Beyond its architectural intricacies, this indicator is a treasure trove of analytical depth. It seamlessly categorizes market trends, assigning a “cloud score” that encapsulates the pulse of the market’s momentum.

Utilizing an elegant color scheme (gray, green, and red), it visually interprets and delineates ranging, positive, and negative market trends. Moreover, it integrates a sophisticated volume profile feature, offering a nuanced breakdown of volume across selected historical bars. This visualization enables traders to grasp the intricacies of volume distribution within the market landscape.

The Donchian Cloud’s optimization features further amplify its utility, allowing traders to refine their strategies by integrating its insights into their decision-making processes. Through this amalgamation of its parts – the channel structures, color representation, volume profiling, and optimization features – the Donchian Cloud emerges as an indispensable asset for traders seeking depth and precision in their market analysis.


Weighted Conditions: The indicator evaluates various conditions associated with Donchian bands, assigning weighted scores to different scenarios, which collectively determine the cloud score. These scenarios include upper/lower band breakouts, basis line interplays, and their respective weights.

Visual Representations: The cloud score reflects in altered bar colors – gray, green, and red – indicating ranging, positive, and negative market trends.

Donchian Cloud Bar Color

Volume Profile: LeafAlgo’s Donchian Cloud includes a volume profile range, offering a breakdown of volume across a customizable number of previous bars. This histogram provides insights into volume distribution, aiding in trend analysis.

Donchian Cloud Volume Profile

Optional Data Table: An optional data table on the chart provides real-time insights into key metrics and indicators. It enhances convenience by offering comprehensive information for informed decision-making.

Donchian Table


The Donchian Cloud indicator offers a multifaceted approach to deciphering market movements, including the identification of key support and resistance levels. By leveraging the volume profile in conjunction with Donchian levels, traders gain insights into significant areas of market interest.

Utilizing Volume Profile and Donchian Levels for Support and Resistance:

Volume Profile Analysis: The volume profile functionality provides a detailed breakdown of volume distribution across preceding bars. Peaks and valleys in the volume profile can signify significant areas where trading activity was notably high or low. High-volume nodes often indicate robust support or resistance zones, aiding in confirming potential reversals or breakout points.

Donchian Levels Interpretation: The Donchian bands, including upper and lower boundaries along with the basis line, serve as dynamic support and resistance levels. Breakouts or bounces from these levels indicate potential shifts in market sentiment. Identifying overlaps between volume nodes and Donchian levels can reinforce the significance of these zones as reliable support or resistance areas.

Limitations: While LeafAlgo Pro stands as a powerful trading tool, it’s prudent to couple its signals with additional technical analysis methods due to market volatility. Relying solely on generated signals may not account for all market conditions.

Empower your trading decisions with LeafAlgo’s sophisticated indicators and comprehensive strategies. Take your trading to the next level! Visit our pricing page to unlock the full potential of LeafAlgo and make insightful trading decisions with confidence.

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