EnvelopesZonesMT5

Indicator EnvelopesZonesMT5 It is the result of merging two Envelopes indicators. As a result, formed a number of zones.

The first zone is limited by two slow lines (red and blue). In the screenshot, this area is marked by number 1. It is a delimiter upward and downward trends.

The second zone - blue. The screenshot is marked number 2. This zone performs the confirmation function. If the price is lower than the first zone and the lower zone of the blue, it indicates that at this point in time downward trend indeed. If the price is higher than the first zone and above the blue zone, this indicates that at this point in time the trend is really rising.

The third zone - pink. The screenshot is marked number 3. This area is perhaps the most important. If the price was in the zone, then now is the time to look for an opportunity to make a trade in the direction of the trend.

The fourth zone is limited by two fast lines (red and blue). The screenshot is marked number 4. They act as overbought and oversold levels.

The accuracy of the third and fourth zones is increased if they are confirmed by the levels of support and resistance levels or Fibbonachchi.

settings

• fast - small period indicator;


• slow - large period indicator;


• deviation - coefficient of variation;


• method - smoothing method;


• price - the price used to calculate the indicator.