Moving Average Envelope Expert Advisor Setup

Moving Average Envelope Expert Advisor Setup - Setting Up Moving Average Envelope Expert Advisor - A trader can come up with an Moving Average Envelope Expert Advisor based on the Moving Average Envelope indicator explained below.

Moving Average Envelope Expert Advisor rules can be combined with other Forex technical indicators to come up with other EA Robots that trade using rules based on two or more indicators combined to form a trading system.

Momentum Technical Analysis and Momentum 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 - Moving Average Envelope Expert Advisor Setup

FX Technical Analysis & How to Generate Signals

MA Envelope can be traded using several different trading rules. The main technique of generating trading signals is to use the price penetrating the upper channel or lower channel.

Bullish Trading Signal

Price penetrating the upper channel is a long buy signal.

Buy Forex Signal - Forex Moving Average Envelope Expert Advisor Setup

Bearish Trading Signal

Price penetrating the lower channel is a short sell signal.

Sell Forex 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.