Momentum Metals Analysis & Momentum Trading Signals

The Moving Average Envelope indicator creates two lines around the metals 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.

Moving Average Envelope

Metals Analysis and How to Generate Trading Signals

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

Bullish Trading Signal

Metals Price penetrating the upper channel is a long buy metals trading signal.

Buy Trading Signal

Bearish Trading Signal

Metals Price penetrating the lower channel is a short sell metals trading signal.

Sell Trading Signal

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