Description
Q: Hi, when calculating the dynamic cloud level lines, are these calculated from the mid-line, or is the high level calculated from the donch upper band and the low from the low donch band? Thanks.
A: Thank you so much for your interest.
First, I would love to explain: How Donchian High / Low are calculated:
- Upper Band: This is the highest price (highest high) reached over the last N bars (where N is the lookback period you set).
- Lower Band: This is the lowest price (lowest low) reached over the last N bars.
Our Superior Donchian is built on this original Donchian Channel logic.
The difference is our team has added Smooth and added 2 additional dynamic levels below the standard High/Low bands:
- Upper Offset
- Lower Offset
These offset levels are not calculated from the mid-line. Instead, they are derived from the original Donchian High and Low bands, using one of 3 selectable modes:
- ninZaATR
- Standard Deviation
- Channel Range
Here are some images for your reference:
When Smooth Mode is OFF, our Superior Donchian (Pro version) behaves the same as the original Donchian Channel. The core High/Low logic is unchanged, we simply add entry signals plus 2 advanced Upper and Lower Offset levels.
When Smooth Mode is ON, the Superior Donchian applies smoothing to the channel movement, allowing it to react more gradually to price changes.
This helps reduce noise and makes the structure easier to read, especially in fast or choppy market conditions.
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