Donchian Channel

Futures Intermediate NIFTY Futures BANKNIFTY Futures Stock Futures MCX Futures

Markets Transitioning from Range to Trend

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Quick Reference

Strategy Type Breakout and Trend Following System Based on Price Channels
Market Outlook Markets Transitioning from Range to Trend
Risk Profile Defined Risk Using Channel Width or ATR-Based Stops
Reward Profile Unlimited Profit Potential in Sustained Breakouts
Time Horizon Swing to Positional Trading (5-30 days typical)
Capital Requirement Medium (Futures Margin Required)
Margin Type SPAN + Exposure Margin for Futures
Best Used When Markets break out of consolidation with momentum continuation

When to Use This Strategy

Markets break out of consolidation with momentum continuation

India-Specific Notes

Lot Sizes

NIFTY 25 units per lot
BANKNIFTY 15 units per lot
Stock Futures Varies by stock

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