Advance Envelope Indicator
- Envelope Indicator is formed with two Moving Averages, one is shifted upward and another one is shifted downward.
- It defines the upper and lower margins of price range.
- We need to attach Envelope indicator which is present in MT4 by default
- MA_Period: Averaging Period for calculating the main line.
- MA_Shift: Moving Average shift. Indicator line offset relates to the chart by timeframe
- MA_Method: There are four moving average method:
- MODE_SMA: Simple Moving Average (value=0).
- MODE_EMA: Exponential Moving Average (value=1).
- MODE_SMMA: Smoothed Averaging (value=2).
- MODE_LWMA: Linear Weighted Averaging (value=3).
- Applied_Price: There are seven Applied Prices.
- PRICE_CLOSE (value=0).
- PRICE_OPEN (value=1).
- PRICE_HIGH (value=2).
- PRICE_LOW (value=3).
- PRICE_MEDIAN (value=4).
- PRICE_TYPICAL (value=5).
- PRICEWEIGHTED (value=6).
- Deviation: Percent deviation from main line. We can increase or decrease the distance between upper and lower envelope lines.
We need to set the deviation same for envelope indicator (By default) & Envelope Indicators
- When price reaches the upper envelope which is pink in color than it shows an Up arrow and bar color changes to Red color which indicates Sell Signal.
- When price reaches the lower envelope which is light blue in color than it shows a down arrow and bar color changes to green color which indicates Buy Signal.
- When bar is between Upper Envelope and lower envelope value than bar color changes to Yellow.
- When bar crosses both upper envelope and lower envelope value than bar color changes to half red and half green.