Turtle 20-Day Breakout (Donchian)

Yes, the most important indicator used in the Turtle Rules (Turtle Trading Strategy) for finding breakouts above previous highs is the Donchian Channel. 🐢📈

Donchian Channel
The Donchian Channel is a trend-following indicator composed of three lines plotted on the chart:

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Upper Band: The highest high over the defined number of periods.

Lower Band: The lowest low over the defined number of periods.

Middle Line: The average of the Upper and Lower bands (not always used, but sometimes added for orientation).

The Turtle Rules use the following periods for the entry signals (breakouts) you mentioned in your query:

Short-Term (System 1): Crossing the 20-day high (this corresponds to the upper band of a Donchian Channel with a 20-period setting).

Mid-Term/Long-Term (System 2): Crossing the 55-day high (this corresponds to the upper band of a Donchian Channel with a 55-period setting).

Crossing the upper band signals a breakout and serves as the buy signal for a long position (for short positions, crossing below the lower band is used).

Is there anything else I can translate for you, or would you like me to elaborate on the Average True Range (ATR), the other key indicator used by the Turtles?