Envelopes technical indicator consists of 2 moving averages one of which is shifted upward and another is shifted downward. Envelops can be used as bands around price action that signify overbought and oversold levels and can also be used as price targets. This indicator is same as Bollinger Band as both show the price moves to their extremes.
The period set in default is 14 in the Meta trader, whereas the deviation (shift of the MAS) set is 0.1%. The amount of deviation should be set regarding to the market volatility: the higher the latter is, the bigger it should be. In intraday one may use an hourly chart, and 10-period average and 0.3-0.5% deviation should be fine for any currency pair.
How to interpret:
Buy when the price reaches the lower margin on the band.Sell when the price reaches the upper margin of the band.
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