Using Donchian Channels to Spot Breakouts in Indian Equities

Breakouts are the moments when a stock or index moves beyond its recent trading range, often signaling a new trend or a strong reversal. For retail traders in India’s fast‑moving markets, spotting these moments early can be a game‑changer. One of the most straightforward tools for identifying potential breakouts is the Donchian Channel. By combining a simple price‑based envelope with clear visual cues, this indicator helps traders see when a stock is breaking out of its established range and may be headed for a significant move.