Momentum Energies Technical Analysis & Momentum Trading Signals

The Moving Average Envelopes indicator creates two lines around the energies price forming a channel. The upper and lower channel lines are drawn at an equidistant level above and below the MA. The distance to draw the envelopes is calculated using a percent or a number of pips.

Moving Average Envelope

Energies Technical Analysis & Generating Trading Signals

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

Bullish Trading Signal

Energies Price penetrating the upper channel is a long buy signal.

Buy Trading Signal

Bearish Trading Signal

Energies Price penetrating the lower channel is a short sell signal.

Sell Trading Signal

In a trending market the Moving Average points upwards in an up energies trend market or downwards in a down energies trending market. It is good to use the envelopes together with other technical indicators such as energies trendlines so as to confirm the trading signals generated.