Donchian Channels

A TV channel dedicated to weiner dogs.

Wait...that would be the Dachshund Channel.

No, a Donchian channel is a technical trading cue. Technical trading refers to the process of using the pattern of stock charts to figure out buy and sell signals. See: Chartist. The Donchian channel, named for its creator, Richard Donchian, involves finding the highest high for a stock, as well as its lowest low for a particular period.

Draw horizontal lines through the high and the low. The area in between those lines represent the channel. These bounds can then be used to help predict future stock movement.