BUY FXO Forum Shares
1316
Shares in the BANK:
We BuyWe Sell
$1.8773$1.9354
Results 1 to 2 of 2

Thread: Moving Average Envelopes

  1. #1
    Bullish
    Join Date
    Aug 2007
    Posts
    93
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Moving Average Envelopes

    Characteristic: Support and Resistance Indicator
    Parameter Defaults: MA Period 9 controls the measurement period for the average
    Percent Width 2 controls the percentage distance of the envelope from the MA
    Plots: MaEnv_T Envelope top
    MaEnv_B Envelope bottom

    Moving Average Envelopes are calculated by taking a moving average, and calculating upper and lower trading bands as a fixed percentage above and below the moving average respectively.

    These are considered to suggest extreme overbought or oversold conditions, and to identify trading ranges by the assumption that price should not deviate from the average of the underlying price element (high or low) by the percentage utilized.

    However, it is important to ensure that price is not trending otherwise false signals will be generated.

  2. #2
    In Profit
    Join Date
    Sep 2007
    Posts
    114
    FXO Shares
    0
    FXO Bonus
    0.000
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default

    Just added information from http://www.metaquotes.net/techanalys...tors/envelopes
    envelopes is basic of River Trading System




    Envelopes Technical Indicator is formed with two Moving Averages one of which is shifted upward and another one is shifted downward. The selection of optimum relative number of band margins shifting is determined with the market volatility: the higher the latter is, the stronger the shift is.
    Envelopes define the upper and the lower margins of the price range. Signal to sell appears when the price reaches the upper margin of the band; signal to buy appears when the price reaches the lower margin.
    The logic behind envelopes is that overzealous buyers and sellers push the price to the extremes (i.e., the upper and lower bands), at which point the prices often stabilize by moving to more realistic levels. This is similar to the interpretation of Bollinger Bands.


    Calculation

    Upper Band = SMA(CLOSE, N)*[1+K/1000]
    Lower Band = SMA(CLOSE, N)*[1-K/1000]

    Where:
    SMA Simple Moving Average;
    N averaging period;
    K/1000 the value of shifting from the average (measured in basis points).
    Remember.
    Trading is not a sprint but a marathon. Compounding money is a powerful thing.
    Be patient and persistent
    Exercise discipline
    Always, Always use stops loss
    Protect your profits at all times.
    Accept your losses like a man. If you cant accept your losses you will become a nerverous trader.
    When in doubt stay out.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Disclaimer
2005-2017 © FXOpen All rights reserved. Various trademarks held by their respective owners.

Risk Warning:: Trading on the Forex market involves substantial risks, including complete possible loss of funds and other losses and is not suitable for all members. Clients should make an independent judgment as to whether trading is appropriate for them in the light of their financial condition, investment experience, risk tolerance and other factors.

FXOpen Markets Limited, a company duly registered in Nevis under the company No. C 42235. FXOpen is a member of The Financial Commission.

FXOpen AU Pty Ltd., a company authorised and regulated by the Australian Securities & Investments Commission (ASIC). AFSL 412871ABN 61 143 678 719.

FXOpen Ltd. a company registered in England and Wales under company number 07273392 and is authorised and regulated by the Financial Conduct Authority (previously, the Financial Services Authority) under FCA firm reference number 579202.

FXOpen does not provide services for United States residents.

Join us