MA Envelope

Period: 20

Percent: 6

There are three lines plotted below the chart in the MA Envelope indicator.

1 – The green line is the Upper Band

2 – The red line is the Middle Band

3 – The blue line is the Lower Band

In MA envelopes, the percentage difference from the moving average line is plotted. A moving average line is shown in the middle band. The percentage above the moving average is the upper band and the percentage below the average line is the lower band.

It is possible for the user to specify the period and percentage of the moving average.

A price above the upper band of the MA envelope indicates a bullish trend, while a price below the lower band indicates a bearish trend. The price is moving within the MA envelope bands, which suggests that it is moving within a normal range.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.