Donchian Steps Momentum Forex Trading Strategy

Are you tired of missing strong momentum moves because you’re caught in pull-backs or noisy ranges? This video shows a clean setup using the Donchian channel to capture momentum with the trend, not fight it.

What we’ll cover:
We combine two key tools:

The Donchian Channel to identify when the market has made a sharp swing and is ready for momentum to continue.

A short-term pull-back trigger (the “step back” to a moving average or structural level after the impulse) to enter with better risk-reward.

Core Buy & Sell Rules:
✅ Buy Setup:
A strong bullish momentum candle closes above the upper Donchian band.
Price pulls back toward the 20-period EMA (or equivalent dynamic support) without breaking structure.
A bullish rejection/candle confirms the pull-back is over — enter long.

❌ Sell Setup:
A strong bearish momentum candle closes below the lower Donchian band.
Price pulls back toward the 20-period EMA (or equivalent dynamic resistance) without breaking structure.
A bearish rejection/candle confirms the pull-back ends — enter short.

Risk Management Tips:
Place your stop-loss just beyond the swing that preceded the momentum break (recent swing high for shorts / swing low for longs).
Only take these setups when momentum is clear and the pull-back is clean — skip it in choppy or sideways markets.

📥 Download the free indicator/template and get started now: https://forexmt4indicators.com/donchi...

💬 Comment below: Which timeframe do you trade most often (H1 / H4 / Daily)? And what’s your #1 challenge when trading momentum-based setups?

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