Mov Avg Envelopes (Indicator)

$image\moving_average_envelopes.gif$

Input Information

Name	Expression	Default	Description
PriceH	Numeric	Close	Price to be used for calculation of the upper envelope.
PriceL	Numeric	Close	Price to be used for calculation of the lower envelope.
Length	Numeric	20	Number of bars of data to be included in calculation of the moving averages.
PctAbove	Numeric	1	Percentage above the upper moving average to plot the upper envelope (for example, 5 = 5%, 0.5 = ½ of one percent, and so on).
PctBelow	Numeric	1	Percentage below the lower moving average to plot the lower envelope (for example, 5 = 5%, 0.5 = ½ of one percent, and so on).
Displace	Numeric	0	Number of bars to displace the plot of the envelope.

Market Synopsis

The Moving Average Envelopes indicator calculates 2 moving averages using the 2 price inputs PriceH and PriceL. Both averages are calculated using price data from the same number of bars, per the input Length. The average of the high price is increased by the percent in the input PctAbove and then plotted. The average of the low price is reduced by the percentage in the input PctBelow and then plotted (the averages are not plotted by this indicator). Moving averages are recognized for their value in identifying trends. Using moving averages of highs and lows, and adjusting them for a fixed percentage, can be helpful in finding extreme conditions of overbought or oversold and in identifying trading ranges.

Plot Information

Number	Name	Default Color	Description
Plot1	LowerBand	Cyan	Plots the lower envelope value.
Plot2	UpperBand	Red	Plots the upper envelope value.

When applied to a chart, this indicator displays two plots in the same subgraph as the price data.