Envelopes Indicator for MetaTrader 5 Download – Free - [TradingFinder]

The Envelopes Indicator is a technical analysis tool used to identify support, resistance zones, and trend changes in financial markets.

This indicator consists oftwo lines that are a fixed percentage away from the moving average. The blue and red lines are used to identify overbought and oversold levels.

Envelopes Indicator Specifications Table

Table below contains information about the Envelopes Indicator in MetaTrader 5:

Uptrend Conditions

The image below shows the price chart of the USD/JPY pair on the 5 minute timeframe.

Breakingthe blue line indicates a potential trend reversal from bearish to bullish.In such situations, theEnvelopes Indicator issues a Buy signal.

Bearish Trend Conditions

The image below shows the price chart of Bitcoin (BTC/USD) on the 15-minute timeframe.

In theEnvelopes Indicator, when the orange line breaks downward, there is a likelihood of a trend reversal from bullish to bearish, and a Sell signal is issued.

Indicator Settings

Image pertains to the settings of the Envelopes indicator:

• Chart theme: Chart theme;
• MA period: Moving Average (MA) period to 14;
• MA shift: Moving Average (MA) shift to 0;
• MA method: Moving Average (MA) method;
• Applied price: Applied price;
• Deviation: Deviation.

Conclusion

The Envelopes Indicator is a tool used to identify breakout zones, trend changes, and reversals.

It can be used for trading at the peaks and troughs ofranging markets to find suitable Entry points.