Momentum XAUUSD Technical Analysis and Momentum Trading Signals
The Moving Average Envelopes indicator creates two lines around the gold price forming a channel. The upper and lower channel lines are drawn at an equidistant level above and below the MA. The distance to draw the envelopes is calculated using a percent or a number of pips.
Moving Average Envelope
XAUUSD Technical Analysis and Generating XAUUSD Signals
MA Envelope can be traded using several different trading rules. The main method of generating xauusd trading signals is to use the gold price penetrating the upper channel or lower channel.
XAUUSD Price penetrating the upper channel is a long buy xauusd signal.
Buy XAUUSD Signal
XAUUSD Price penetrating the lower channel is a short sell xauusd signal.
Sell XAUUSD Signal
In a trending market the MA points upwards in an up xauusd trend market or downwards in a down xauusd trending market. It is good to use the envelopes together with other technical indicators such as xauusd trend lines so as to confirm the signals generated.