Moving Average Envelope EA Setup

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

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

Momentum Forex Trading Technical Analysis & 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 - Moving Average Envelope EA Setup

Forex Trading Analysis and Generating Signals

MA Envelope can be traded using several different trading rules. Main method of generating forex 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 Signal - Forex Moving Average Envelope EA Setup

Bearish Trading Signal

Price penetrating the lower channel is a short sell signal.

Sell Signal - Forex Moving Average Envelope EA 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 indicators such as trendlines so as to confirm the trading signals generated.