FTB-C000505 / Formula component

Donchian Middle Channel

Donchian Middle Channel is the arithmetic midpoint of the upper and lower Donchian boundaries.

Also known asDonchian basisDonchian midrange

Foundation Formula defined 1 linked topicPublished

Definitions

In plain terms

It summarizes the center of the rolling extreme range rather than averaging all observed prices.

Technical

The formula is one-half of upper plus lower and is ready only when both boundaries are ready.

Scope

Calling it a moving average hides its dependence only on the two active extrema.

Formula

Donchian middle = (upper + lower) / 2
LaTeX: M_t=\frac{U_t+L_t}{2}
SymbolMeaningUnit
U_tDonchian upper channelprice units
L_tDonchian lower channelprice units

Output unit: price units

Examples

  • A reviewer traces Donchian Middle Channel from aligned inputs through its first-ready row and edge cases before accepting a displayed value.

Common misconceptions

  • Calling it a moving average hides its dependence only on the two active extrema.

Concept relationships

Prerequisites

Related

Contrasts with

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D07-F04-A05 Important

Evidence and governance

  1. Donchian Channels TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: Causal lagging, tie ownership, and exact breakout event rules are local implementation boundaries.

Reviewed by
fintech-builder-batch-009
Last reviewed
2026-07-30
Next review
2027-07-30
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.