Moving Average Displaced Envelope
Moving Average Displaced Envelope by Omega Research. These envelopes are calculated by multiplying percentage factors with their displaced expotential moving average (EMA) core. The user may modify the input (close), method (EMA), periods, factors and displacements. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Moving Average Displaced Envelope
Adjust the envelopes percentage factors to control the quantity and quality of the signals. If a previous high goes above the envelope a sell signal is generated. Conversely, if the previous low goes below the envelope a buy signal is given.
How To Access in MotiveWave
Go to the top menu, choose Study>Bands>Moving Average Displaced Envelope
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//input = price, user defined, default is closing price
//method = moving average, user defined, default is EMA
//period = user defined, default is 9
//perAb = percent above = user defined, default is .5
//perBl = percent below = user defined, default is .5
//disp = displacement = user defined, default is 13
//index = current bar number
//ma = moving average, prev = previous
Plot1: top = ma(method, index-disp, period, input) * ((100 + perAb)/100); Plot2: bott = ma(method, index-disp, period, input) * ((100 - perBl)/100); //Signals prevHigh = high; prevLow = low; sell = prevHigh moreThan top; buy = prevLow lessThan bott;