Description
The Moving Average Envelope study calculates a moving average of specified type and length and plots it shifted up and down by a specified percentage. Upper and lower bands can be used as overbought and oversold levels respectively.
Input Parameters
| Parameter | Description |
|---|---|
displace
|
The horizontal displacement of the moving average, in bars. Positive values signify a backward displacement. |
length
|
The number of bars used to calculate the moving average. |
pct above
|
The percentage of the moving average value for upward shift. |
pct below
|
The percentage of the moving average value for downward shift. |
price h
|
The price used in calculation of the higher moving average. |
price l
|
The price used in calculation of the lower moving average. |
average type
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |
Plots
| Plot | Description |
|---|---|
UpperBand
|
The Upper Band plot; moving average of the specified type shifted up by the specified percentage. |
LowerBand
|
The Lower Band plot; moving average of the specified type shifted down by the specified percentage. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.
Past performance is no guarantee of future performance.