Moving Average Envelopes indicator - it's a modification of the standard Envelopes indicator for the MetaTrader 5 terminal. The indicator builds a channel on the price chart of the currency pair, consisting of moving averages, which are shifted up and down relative to the central moving average.
In the settings of Moving Average Envelopes indicator you can set the method of calculation of moving averages, its type, period, offset, as well as the timeframe from which the indicator readings will be displayed.
How to trade using the Moving Average Envelopes indicator
- aggressive method: entering the market if the price crosses the blue line
- classical method: entering the market if the price crosses the yellow line
- When the red line is crossed and the price returns, you can open positions as the price moves
- if the price is in the range between the blue lines - it is better to stay out of the market
Note that Moving Average Envelopes indicator with default parameters will not work for all currency pairs, so we recommend that you adjust the settings of the indicator to the currency pair you are trading and to the used timeframe.