Momentum Analysis & Momentum Signals
The Moving Average Envelopes indicator creates two lines around the price forming a channel. The upper and lower channel lines are drawn at an equidistant level above & below the MA. The distance to draw the envelopes is calculated using a percent% or a number of pips.
MA Envelope
Technical Analysis & Generating Signals
MA Envelope can be traded using several different rules. Main method of generating xauusd signals is to use the price penetrating the upper channel or lower channel.
Bullish Signal
Price penetrating the upper channel is a long buy gold trade signal.
Buy Trade Signal
Bearish Signal
Price penetrating the lower channel is a short sell trade signal.
Sell Trading Signal
In a trending market the Moving Average points upwards in an uptrend market or downward in a down trending market. It is good to use the envelopes together with other indicators such as trend-lines so that to confirm the signals generated.
Learn More Courses & Lessons:
- How to Use MT4 Bollinger Bands Fib Ratios Trading Indicator
- How to Trade MetaTrader 4 Upward XAU/USD Trend-line on MetaTrader 4
- What's EU50 Index MetaTrader 4 Chart?
- IBEX35 Strategies List & Best IBEX Strategies to Trade IBEX
- How Do You Analyze MetaTrader 5 Trade Software MT5 User Tutorial?
