Momentum Gold Trading Analysis & Momentum Trading Signals

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

MA Envelope

Gold Analysis & How to Generate Signals

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

Bullish Trading Signal

Price penetrating the upper channel is a long buy xauusd trade signal.

Buy Trading Signal

Bearish Trading Signal

Price penetrating the lower channel is a short sell xauusd trade signal.

Sell Trade Signal

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