Momentum Gold Analysis & Momentum Signals
The MA Envelope technical indicator creates 2 lines around the price forming a channel. The upper and lower channel lines are plotted at an equi-distant level above and below the MA. The distance to draw the Moving Average envelopes is calculated using a % or a number of pips.
MA Envelope
Gold Analysis & How to Generate Trading Signals
Moving Average Envelope can be transacted using several different rules. The main method of generating trade signals is to use the price testing/penetrating the upper channel or lower channel.
Bullish Signal
Price penetrating the upper channel is a long buy xauusd gold trade signal.
Buy Trade Signal
Bearish Signal
Price penetrating the lower channel is a short sell xauusd trade signal.
Sell Signal
In a trending market the MA points upward in an up-trend market or downwards in a down-trend market. It's good to use the envelopes together with other indicators such as gold trendlines so as to confirm the trading signals generated.
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