Description

• The Envelope Percent is comprised of two moving averages, one shifted upward and the other shifted downward
• It literally creates support/resistance bands around the data line values

Interpretation

• Overbought level is met when price touches upper envelope line
• Oversold level is met when price touches lower envelope line

Default Parameters Used/Inputs

• Close Line
• Factor
• Time Period
• Avg Type

Returns/Output

Envelope percentage of the stock for the specified period

Formula

MA(X,R)=MA(I[X],R,T)
Hb=MA[X]+MA[X]*Factor
Lb=MA[X]-MA[X]*Factor
MA indicates Moving Average and R indicates range
Hb and Lb indicate high and low bands