Donchian's 4 Week Rule Trend Trading Strategy 💡

Donchian's 4 Week Rule Trend Trading Strategy. http://www.financial-spread-betting.com/course/technical-analysis.html PLEASE LIKE, SUBSCRIBE AND SHARE THIS VIDEO SO WE CAN DO MORE! Richard Donchian's 4 Week Rule strategy. Richard Donchain came up with this rule. You may have heard of the Donchian channels (a trading indicator) and this is pretty much where they came from. I have a GBP/USD on a daily timeframe. Now I know that a lot of people when using these channels start meddling around with them but I think the analysis that this chap did was based on a 4 week rule. The idea was that you would buy when price broke above a 4 week high and you would sell or go short when price went below a 4 week low (lowest point price has been for the last 4 weeks). The settings that should be used are a daily chart with a 20 period so let's see how this would work. This is a trend trading strategy; the idea of this is that once you break out of a trend you are going to get on the end of a good move and it is going to take you to new highs or new lows as the case maybe. But what if you're late when entering the trade? You need to manage the risk and be prepared to take some whipping out in certain cases. This is not a strategy or setup you want to be taking all the time. But it can act as a trigger in some cases.