Moving Average Envelopes

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The Moving Average Envelopes function computes a pair of data bands that envelops a moving average of the input data values.

Each data band is positioned a percentage-based magnitude away from the moving average line. The average line can be calculated using a simple moving average or an exponential moving average. Applications of the Moving Average Envelopes function include indication of overbought/oversold conditions and price trends for a security.

Using MOVAVGEVPUPPER:

MOVAVGEVPUPPER
MOVAVGEVPUPPER

Using MOVAVGEVPLOWER:

MOVAVGEVPLOWER
MOVAVGEVPLOWER

1. Syntax

Upper Envelope:

MOVAVGEVPUPPER(d0,s0,s1,s2)

Lower Envelope:

MOVAVGEVPLOWER(d0,s0,s1,s2)

2. Input

The MOVAVGEVPUPPER and MOVAVGEVPLOWER functions require the following input:

  • d0 - Input data values - The set of data values for which the MOVAVGEVPUPPER and MOVAVGEVPLOWER formulas are calculated.

3. Parameters

The MOVAVGEVPUPPER and MOVAVGEVPLOWER functions require the following parameters.

  • s0 - Moving Average Type - The type of moving average to use in the calculation. Valid values are:
    • 0 : Simple Moving Average (default)
    • 1 : Exponential Moving Average
  • s1 - Period - The number of time periods to use in the calculation. Default value is 10.
  • s2 - Standard Deviation Shift - The number of standard deviations that is used to shift the bands away from the simple moving average. Default value is 2.5.

4. Output

The MOVAVGEVPUPPER function generates the following output:

  • Upper Envelope - The Upper Envelope result set.

The MOVAVGEVPLOWER function generates the following output:

  • Lower Envelope - The Lower Envelope result set.

5. See also

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