Moving Average Envelopes are simple but effective indicators — it’s surprising they aren’t more widely understood and used. This, however, can be used to your advantage. By being one of the comparatively few traders who knows how to use Moving Average Envelopes, you’ll have a secret weapon at your disposal!
This episode of the TradingTips.com video newsletter thoroughly explores Moving Average Envelopes. Beyond that, it shows you how to add them to your stock charts, and offers a couple of different ways they can be used. For more on what this episode covers, read on.
In this episode, you’ll learn:
- What Moving Average Envelopes are — with a real-life example (0:37)
- How to set up Moving Average Envelopes (1:08)
- The “trickiest” problem when setting up your Envelopes — and how to solve it (2:08)
- How to interpret Moving Average Envelopes (3:00)
This episode also contains several thoroughly annotated charts as examples, and tells you how to read Moving Average Envelopes in trending and flat-trading markets.
Moving Average Envelopes are simple and effective — but they require a little more work than most “one-size-fits-all” indicators. No matter: with a little experimentation and back-testing, you can produce a reliable indicator that could mean the difference between profitable and unprofitable trading.
CEO, Wealthpire Inc.
P.S. In our next video, we’ll be looking at Average True Range (ATR), an indicator reference in this episode. Be sure to tune in!