Q: Volatility measurement

The difference between HIGHEST and LOWEST gives the price range: ``` Range = HIGHEST(20) - LOWEST(20) ``` A narrow range suggests consolidation; a wide range suggests trending or volatile conditions.

Q: Support/Resistance identification

Recent highs and lows act as natural support and resistance: - HIGHEST(50) represents a significant recent resistance level - LOWEST(50) represents a significant recent support level

Q: Example conditions

| Condition | Meaning | |-----------|---------| | `close > HIGHEST(20)` | Price breaks above 20-bar high (breakout buy) | | `close HIGHEST(50)` | New 50-bar high — strong momentum | | `low HIGHEST(5)` | Price above last 5 bars' high — micro breakout |

Question 1

What is Highest/Lowest?

Accepted Answer

Highest and Lowest are relative extreme indicators that find the maximum or minimum value of a price series over the last N bars. They are essential building blocks for breakout strategies, channel detection, and range analysis.

Question 2

How they work

Accepted Answer

``` HIGHEST(N) = Maximum value of the source over the last N bars LOWEST(N) = Minimum value of the source over the last N bars ``` By default, HIGHEST uses the high price and LOWEST uses the low price: - **HIGHEST(20)** — the highest high of the last 20 bars - **LOWEST(20)** — the lowest low of the last 20 bars These values update on each bar as the rolling window moves forward.

Question 3

Parameters

Accepted Answer

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 20 | Number of bars for the lookback window |

Question 4

Donchian Channel breakout

Accepted Answer

A classic breakout strategy — buy when price exceeds the highest high, sell when it falls below the lowest low: ``` Entry Long: close > HIGHEST(20) Entry Short: close < LOWEST(20) ```

Question 5

Volatility measurement

Accepted Answer

The difference between HIGHEST and LOWEST gives the price range: ``` Range = HIGHEST(20) - LOWEST(20) ``` A narrow range suggests consolidation; a wide range suggests trending or volatile conditions.

Question 6

Support/Resistance identification

Accepted Answer

Recent highs and lows act as natural support and resistance: - HIGHEST(50) represents a significant recent resistance level - LOWEST(50) represents a significant recent support level

Question 7

Example conditions

Accepted Answer

| Condition | Meaning | |-----------|---------| | `close > HIGHEST(20)` | Price breaks above 20-bar high (breakout buy) | | `close HIGHEST(50)` | New 50-bar high — strong momentum | | `low HIGHEST(5)` | Price above last 5 bars' high — micro breakout |

Question 8

Tips

Accepted Answer

- The Donchian Channel (HIGHEST/LOWEST over N bars) is one of the most robust breakout strategies — used by the famous Turtle Traders - Short periods (5-10) capture micro breakouts — good for scalping - Medium periods (20-50) are standard for swing trading - Long periods (100-200) identify major support/resistance levels - Combine breakouts with volume confirmation to filter false breakouts - Use HIGHEST/LOWEST as trailing stop levels: exit long when price falls below LOWEST(10) - Narrowing of H