Technical Indicators

Envelopes (Env)

Purpose

The Envelopes indicator reflects the price overbought and oversold conditions helping to identify the entry or exit points as well as possible trend break-downs.


Usage

The indicator consists of two SMAs that together form a flexible channel in which the price evolves. The averages are plotted around a Moving Average in a constant percentage distance which may be adjusted according to the current market volatility. Each line serves as a margin of the price fluctuation range.


In a trending market take only oversold signals in an uptrend conditions and overbought signals in a downtrend conditions.


In a ranging market the price reaching the top line serves as a sell signal, while the price at the lower line generates a signal to buy.



Calculation

Upper Band = SMA(CLOSE, N)*[1+K/1000]
Lower Band = SMA(CLOSE, N)*[1-K/1000]


Where: 
SMA — Simple Moving Average;
N — averaging period;
K/1000 — the value of shifting from the average (measured in basis points).


Deposit methods:


Live chat

Our consultants will answer all your questions live



© IFC Markets Corp. 2006-2012 IFC Markets is a Forex (Foreign Exchange Market) broker providing services in spot Forex for both individual and corporative clients. Other services include Forex Education and Forex Training.
The information and services described on this site are not directed at and are not available for residents of the USA


Risk warning: Relatively small rate changes of trading instruments (currency pair, CFDs, etc.) when fulfilling trading operations on high leverage can cause significant changes to the customer trading account (proportionally to the leverage used). At movement of the market against the customer position he can incur significant loss of part or the whole deposit. The customer is fully responsible for using his financial resources and choosing the trading strategy.

Many financial tools have high volatility and/or have significant intraday time ranges of price changes that define high probability of reception of both fast profits and losses from trading operations.


Anti-Money Laundering Policy: The Anti-Money Laundering Policy follows the standards of the Anti-Money Laundering and Combating Terrorism Financing (hereinafter collectively referred to as “AML”) procedures within the IFCM Group.
In any country/jurisdiction where the requirements of applicable anti-money laundering laws and regulations act to establish higher standards, IFCM Group must meet those standards.
IFCM Group is committed to examining its anti-money laundering strategies, goals and objectives on an ongoing basis and to maintaining an effective AML Policy for the IFCM Group’s business. The AML Policy in PDF