When one of the two moving averages shifted upwards, and another moved downwards – they form the technical indicator Envelopes. Choosing the optimum relative magnitude of a band`s bounds shift is determined by the market volatility: the more the shift, the more the relative number. The price fluctuations of securities are determined by the top and bottom borders of the Envelopes. If the price reaches the bottom bound, there appears a purchase signal. If the price touches the top border, the signal for selling appears.

A type of technical indicator typically formed by two moving averages that defineupper and lower price range levels. An envelope is a technical indicator used by investors and traders to help identify extreme overbought and oversold conditions in a market.

A type of technical indicator typically formed by two moving averages that define upper and lower price range levels. An envelope is a technical indicator used by investors and traders to help identify extreme overbought and oversold conditions in a market. The envelopes, which typically appear overlaid on a price chart, are also useful in identifying trading ranges for a particular trading instrument.

A type of technical indicator typically formed by two moving averages that define upper and lower price range levels. An envelope is a technical indicator used by investors and traders to help identify extreme overbought and oversold conditions in a market. The envelopes, which typically appear overlaid on a price chart, are also useful in identifying trading ranges for a particular trading instrument.