The logic behind using the envelope indicator is to help buyers and sellers push the price to the extremes which are the higher and lower bands, after this, the prices will often stabilise by moving to more realistic levels.
Envelopes are defined by two moving averages that form an upper, lower and middle band, and these boundaries change due to market volatility. The period used for the moving averages is 14, but a standard deviation of 0.1% is used, so the moving averages are parallel to each other and are at a certain distance.
Custom Parameters
There are a few custom settings for this indicator which are shown below, as you can see there are 8 different types of moving averages to choose from for the indicator formula.
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
Any Questions?
If you have any questions, please first search our product help forum for the answer, if you cannot find it, post a new question.
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