Volatility

Moving Average Envelope

ENV

Draws upper and lower bands at a fixed percentage above and below an SMA. Unlike Bollinger Bands, the width does not change with volatility. Traders use the bands as dynamic support/resistance and mean-reversion targets.

Tips

Choose the percentage by measuring how far price typically deviates from the SMA on the instrument you’re trading—2–3% suits most large-cap stocks

In trending markets price can ride the upper or lower band for extended periods; use a trend filter before fading touches

Parameters

Period

2 - 100

Percent %

0.1 - 10