Forex Moving Average Envelope Expert Advisor Setup
Forex Moving Average Envelope Expert Advisor Setup - Setting Up Moving Average Envelope Expert Advisor - A Forex trader can come up with an Moving Average Envelope Expert Advisor based on the Moving Average Envelope indicator explained below.
Forex Moving Average Envelope Expert Advisor rules can be combined with other Forex trading indicators to come up with other EA Forex Robots that trade using rules based on two or more indicators combined to form a forex trading system.
Momentum Technical Analysis and Momentum Trading Signals
The Moving Average Envelope indicator creates two lines around the price forming a channel. The upper and lower channel lines are plotted at an equidistant level above and below the MA. The distance to plot the envelopes is calculated using a percent or a number of pips.
Moving Average Envelope - Forex Moving Average Envelope Expert Advisor Setup
Technical Analysis and Generating Signals
MA Envelope can be traded using several different trading rules. The main method of generating Forex trading signals is to use the price penetrating the upper channel or lower channel.
Bullish signal
Price penetrating the upper channel is a long buy signal.
Buy Signal - Forex Moving Average Envelope Expert Advisor Setup
Bearish signal
Price penetrating the lower channel is a short sell signal.
Sell Signal - Forex Moving Average Envelope Expert Advisor Setup
In a trending market the MA points upwards in an uptrend market or downwards in a down trending market. It is good to use the envelopes together with other technical indicators such as trend lines so as to confirm the signals generated.