Moving Average Envelope Expert Advisor Setup

Moving Average Envelope Expert Advisor Setup - Setting Up Moving Average Envelope Expert Advisor - A trader can come up with an Moving Average Envelope Expert Advisor based on the Moving Average Envelope indicator explained below.

Moving Average Envelope Expert Advisor rules can be combined with other indicators to come up with other EA Bots that trade using rules based on two or more indicators combined to form a system.

Momentum Analysis and Momentum Signals

The MA Envelope indicator creates two lines around the price forming a channel. The upper & lower channel lines are plotted at an equidistant level above and below the MA. The distance to plot the envelopes is calculated using a percent or a number of pips.

Moving Average Envelope - MA Envelope Expert Advisor Setup

FX Analysis & How to Generate Signals

MA Envelope can be traded using several different trading rules. The main technique of generating signals is to use the price penetrating the upper channel or lower channel.

Bullish Signal

Price penetrating the upper channel is a long buy signal.

Buy Signal - Forex Moving Average Envelope Expert Advisor Setup

Bearish Signal

Price penetrating the lower channel is a short sell signal.

Sell Signal - Forex MA Envelope EA Setup

In a trending market the Moving Average points upward in an uptrend market or downwards in a down trending market. It is good to use the envelopes together with other indicators such as trend lines so as to confirm the signals generated.