This indicator displays a simple marker of the Highest High in the last few periods, and the Lowest Low in the last few periods. Usually this indicator is configured to use 20 periods. Center line displays average between highest high and lowest low. Dochian Channel Indicator is useful because previous highs and lows usually show significant resistance to further currency price movement.
UP(N) = MAX(HIGH, N)
DOWN(N) = MIN(LOW, N)
DNC(N) = (UP(N) + DOWN(N)) / 2
It shows the position of price within Channel.