Introduction:

• Envelope Indicator is formed with two Moving Averages, one is shifted upward and another one is shifted downward.
• It defines the upper and lower margins of price range.
• We need to attach Envelope indicator which is present in MT4 by default

Inputs:

• MA_Period: Averaging Period for calculating the main line.
• MA_Shift: Moving Average shift. Indicator line offset relates to the chart by timeframe
• MA_Method: There are four moving average method:
• MODE_SMA: Simple Moving Average (value=0).
• MODE_EMA: Exponential Moving Average (value=1).
• MODE_SMMA: Smoothed Averaging (value=2).
• MODE_LWMA: Linear Weighted Averaging (value=3).
• Applied_Price: There are seven Applied Prices.
• PRICE_CLOSE (value=0).
• PRICE_OPEN (value=1).
• PRICE_HIGH (value=2).
• PRICE_LOW (value=3).
• PRICE_MEDIAN (value=4).
• PRICE_TYPICAL (value=5).
• PRICEWEIGHTED (value=6).
• Deviation: Percent deviation from main line. We can increase or decrease the distance between upper and lower envelope lines.

We need to set the deviation same for envelope indicator (By default) & Envelope Indicators

Features:

1. When price reaches the upper envelope which is pink in color than it shows an Up arrow and bar color changes to Red color which indicates Sell Signal.
2. When price reaches the lower envelope which is light blue in color than it shows a down arrow and bar color changes to green color which indicates Buy Signal.
3. When bar is between Upper Envelope and lower envelope value than bar color changes to Yellow.
4. When bar crosses both upper envelope and lower envelope value than bar color changes to half red and half green.