This not an indicator, it is a strategy that I developed. It works best with Tick Charts and can help you to stay out of choppy markets. I use a 50 Tick Chart on the FDAX. It can be used in differnt ways.

Here is how it works:

Set the Donchian channel to close, not to high and low of a bar. I use a period of 20.

Add a second donchian close on the first donchian with a period of seven. Display only the second Donchian. Now you have two bands.

Wait for the bands coming very close together and both staying sideways for a minimum of 4 bars. (I call it "platform")

Long Entry:

If the close is above the higher band and the band moves up, enter long. Good confirmation is a row of minimum 3 Volume bars of the same colour. A Signal far away from the bands may cause a setback, you better wait for a successful retest of the bands. if the lower band moves to the downside, it`s suspect. If the higher band goes down after a long signal, it may be not a good trade. In a strong uptrend, you can add positions when the market moves back to the upper band and the band goes up.

Short Entry: the same vice versa.

Of course it is best using it together with other tools but can also be a good instrument for timing.

The image shows today`s lousy action in the Fdax. You would have been out out of the market most of the time.

Good Luck

Carl