The Envelopes indicator determines the presence of a trend or flat. It has 3 types of signals, shows the probable retracement levels and levels of the possible targets.
The Fibonacci coefficients are used in the indicator's calculations.
Signals (generated when touching the lines or rebounding from lines):
- Trend - the middle line of the Envelopes has a distinct inclination; the lines below the channel's middle line are used for buy trades, the lines above the middle line and the middle line itself are used for sell trades;
the trade direction must match the direction of the channel's middle line.
- Flat - the middle line of the Envelopes is horizontal; signals are received from the edge and pre-edge borders of the channel with the targets at the opposite border of the channel.
- Volatility breakout - edge borders of the channel are horizontal; breakout of one of these channel borders indicates a beginning of a movement.
- It is possible to modify the color, width and type of any indicator line.
- Period_Trend - trend period.
- Period_Vol - volatility period.