Forex Indicator - The envelope line
A new technical indicator, which we met, is called - Envelopes.This word is translated as the envelope line. This indicator is constructed using the graph. This indicator is constructed by two moving averages, and than one moving average goes up and another down.
The use of technical indicator Envelopes based on the natural logic of market behavior: when under pressure particularly zealous buyers or sellers prices reach extreme values (ie, upper or lower boundary of the band), they are often stabilized, returning to more realistic levels. The same principle is used in the interpretation of Bollinger Bands (Bollinger Bands, BB).
This indicator is needed to facilitate the work of the trader, whether a bull or a bear. It is very useful when working with stock markets.To start using this technical indicator, one must: have experience with similar indicators, to be able to build the right one for him the schedule and be able to correctly identify the short time which is most advantageous to buy or sell a particular currency and still be able to recognize signals which gives an indicator.
The use of technical indicator Envelopes based on the natural logic of market behavior: when under pressure particularly zealous buyers or sellers prices reach extreme values (ie, upper or lower boundary of the band), they are often stabilized, returning to more realistic levels. The same principle is used in the interpretation of Bollinger Bands (Bollinger Bands, BB).
This indicator is needed to facilitate the work of the trader, whether a bull or a bear. It is very useful when working with stock markets.To start using this technical indicator, one must: have experience with similar indicators, to be able to build the right one for him the schedule and be able to correctly identify the short time which is most advantageous to buy or sell a particular currency and still be able to recognize signals which gives an indicator.
