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 ® (BB).
UPPER BAND = SMA (CLOSE, N) * [1 + K / 1000]
LOWER BAND = SMA (CLOSE, N) * [1 - K / 1000]
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/28
The Detrended Price Oscillator eliminates the trend effect of price movement. This simplifies the process of finding out cycles and overbought/oversold levels.DeMarker (DeM)
The Demarker Indicator (DeM) is based on the comparison of the period maximum with the previous period maximum. When the indicator falls below 30, the bullish price reversal should be expected. When the indicator rises above 70, the bearish price reversal should be expected.