This ‘Donchian bias determinator’ indicator can be used to detect an open or close outside the Donchian channel. After a close on the upper side, the candle colors Blue and after a close below the lower side, the candle colors Red. It is a simplified way to play the Donchian 4 weeks rule (Not yet automated). You can tweak this indicator to your own needs, for example, I left away the Donchian channel to get a plain vanilla chart. (attached images).
//Donchian bias determinator indicator
//05-11-2017
//Marcel van Vliet
// mmTYPE=1 (mm type)
Upper = HIGHEST[20](HIGH[1])
Lower = LOWEST[20](LOW[1])
Middle = (Upper + Lower) / 2
bodyhigh = max(open,close)
bodylow = min(open,close)
if(open<=close and close > Upper) then
LongWickUp = high
LongCandleUp = bodyHigh
LongWickDown = low
LongCandleDown = bodyLow
elsif(open>=close and close > Upper) then
LongWickUp = low
LongCandleUp = bodyLow
LongWickDown = high
LongCandleDown = bodyHigh
elsif(open<=close and close < Lower) then
ShortWickUp = high
ShortCandleUp = bodyHigh
ShortWickDown = low
ShortCandleDown = bodyLow
elsif(open>=close and close < Lower) then
ShortWickUp = low
ShortCandleUp = bodyLow
ShortWickDown = high
ShortCandleDown = bodyHigh
elsif(open<=close and close < Upper and close > Lower) then
RangeWickUp = high
RangeCandleUp = bodyHigh
RangeWickDown = low
RangeCandleDown = bodyLow
elsif(open>=close and close < Upper and close > Lower) then
RangeWickUp = low
RangeCandleUp = bodyLow
RangeWickDown = high
RangeCandleDown = bodyHigh
endif
//bullish candlesticks
if close>Upper then
DRAWCANDLE(LongCandleDown,LongWickUp,LongWickDown,LongCandleUp) coloured(0,0,102)
endif
//bearish candlesticks
if close<Lower then
DRAWCANDLE(ShortCandleDown,ShortWickUp,ShortWickDown,ShortCandleUp) coloured(200,0,0)
endif
//neutral candlesticks (Donchian channel)
if close<Upper and close>Lower then
DRAWCANDLE(RangeCandleDown,RangeWickUp,RangeWickDown,RangeCandleUp) coloured(150,150,150)
endif
RETURN upper AS "upper", lower AS "lower", middle AS "middle"