Momentum Gold Analysis & Momentum Signals
The MA Envelope technical indicator creates two lines around the price forming a channel. The upper & lower channel lines are drawn at an equidistant level above and below the MA. The distance to draw the envelopes is calculated using a percentage% or a number of pips.
MA Envelope
Gold Analysis and How to Generate Signals
Moving Average Envelope can be traded using several different rules. The main method of generating trade signals is to use the price penetrating the upper channel or lower channel.
Bullish Signal
Price penetrating the upper channel is a long buy xauusd 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 is good to use the envelopes together with other indicators such as gold trendlines so as to confirm the signals generated.
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