Moving Average Envelope is the percentage value set above and below the moving average. In this case, each Envelope is set to a percentage above or below the moving average. This creates parallel bands which follow the price action. If the moving average is used as a base, the Moving Average Envelope can be used as a trend-following indicator. However, besides just following the trend, Envelope can also be used to determine overbought and oversold levels when the trend is not defined.
The indicator view in the chart.
The indicator has the following parameters:
Period - setting of indicator calculation period.
Mode - set the indicator calculation method.
- Percent - percentage divergence from the price.
- Fixed Value - divergence by a certain value from the price.
Value - set the divergence from the price.
Source - setting of the indicator calculation parameters:
Panel/Moving average period - selection of the indicator location in the chart:
- New panel
Bottom Band, Top Band, Middle Band
Show value - display of the indicator value on the price scale on the left.
Scale/Auto-scaling - if this option is on, the scale will be automatically calculated, based on the minimum and maximum indicator values, so that the indicator would fit in the chart.
Color - color setting of the indicator.
Visual type - visual setting of the indicator display in the chart:
- Up arrow
- Down arrow
- Axis label
Line style - setting of the line display style:
- Dash - dot
- Dash - dot - dot
Width - setting of the indicator line width.
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