A trend-following indicator based on the trading system developed by Richard Dennis and William Eckhardt in the 1980s for their famous Turtle Traders experiment. The channel plots the highest high and lowest low over a set lookback period, typically 20 or 55 periods, creating upper and lower boundaries. A breakout above the upper channel signals a potential long entry, while a break below the lower channel signals a potential short entry.
Example
“Price broke above the 55-period Turtle Channel on strong volume, triggering a long entry signal consistent with the original Turtle Trading rules.”