The Envelope Indicator is similar to moving average indicator of the "Bollinger". It also serves to define the boundaries of potential price movement. But unlike the bands expand the envelope does not depend on the volatility of the pair.
Find possible indicator in MetaTrader 4: Insert - Indicators - Oscillators - Envelopes
The image you see looks like an envelope on the GBP / USD pair at TF = H4.
Deviation envelope = 0.61% (not randomly chosen Fibonacci number)
In fact, the deviation of moving average Envelope Indicator depends not only on trading tool, but also on the Envelope Indicator timeframe. Its not hard to find on the eyes.
On the chart you can use several envelopes in a variety of rejection, in which case you get some Envelope Indicator support / resistance levels.
Envelope Indicator signals of moving averages is simple: we buy at the touch of the lower boundary, we sell to touch the top. It seems simple, but I purposely picked up the picture when a local trend, a couple just went for the upper limit of the envelope, in which case we'd just caught a moose.
I encourage open trade with the Envelope Indicator trend. A Ie, if the trend is upward, then open the transaction only when you touch the lower boundary of the envelope, and if downward, respectively, on the contrary. You must use a trend indicator.
For example you can read this topic: Trading Systems: Ichimoku + PivotPoint + BB.
In this thread BB - means Bollinger. You can easily replace them in an envelope moving averages. This system will Ichimoku trend indicator.
other posts
- Pivot Andichimoku
- Trade With Ichimoku Slow Stochastics
- Icorrelationtable V3
- Ctg Mirror Indicator Forex
- Download Forex Dema Rlh
0 comments:
Post a Comment