Donchain Channel

The Donchian Channel is a price channel consisting of the highest high and lowest low of a certain number of periods (often 20). The upper boundary of the channel is the highest high over the past 20 periods, while the lower boundary is the lowest low over the same period. Strategiest using the Donchian Channel strategy typically look for a breakout above the upper boundary (a signal to go long) or a breakout below the lower boundary (a signal to go short).

The basic idea behind the Donchian Channel strategy is that it helps identify price trends and breakouts, allowing Strategiest to take advantage of upward or downward momentum in the market. However, it is important to note that like all trading strategies, the Donchian Channel strategy comes with its own risks and potential downsides. It is always advisable to thoroughly test any trading strategy before using it in a live trading environment.

The formula for calculating the Donchian Channel is as follows:

$$Upper Donchian Channel = Highest High over N periods$$

$$Lower Donchian Channel = Lowest Low over N periods$$

Where N is the number of periods used to calculate the Donchian Channel.

For example, if a strategiest wants to use a 20-day Donchian Channel, they would calculate the highest high and lowest low of the past 20 days to determine the upper and lower boundaries of the channel. The upper boundary would be the highest high over the past 20 days, while the lower boundary would be the lowest low over the same period

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The execution of the bundle essentially refers to the calculation of these values, which are then handled by the Steer Protocol.