In this article we apply the Donchian Channel on a sample of 16 stocks – Amgen, Bayer, Biogen, BioNTech, CSPC Pharmaceutical Group, CVS Health, Exact Sciences, Fresenius, Gilead Sciences, Merck, Moderna, Pfizer, Sanofi, Teladoc Health, UnitedHealth, and Vertex Pharmaceutical), as well as the Chakin Moneyflow Index and Aroon Up/Down indicator on a set of five securities.
Donchian channels represent upper and lower bands, the channel itself is the distance between the upper and the lower band. The upper bound is the highest high price in a time interval of N days, the lower bound is the lowest low price in the N-day period. The middle channel is the difference between the upper channel and lower channel divided by two. In our trading exercise, we input a 20-day band construction period in a trading platform. The upper channel is indicative of the bullish energy
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