Related source: True Range Envelopes MT4 Indicator
True range envelopes indicator is made up of two moving averages. One of these two moving averages is shifted upwards and the other moving average is shifted downwards. This indicator looks similar to classic envelopes indicator but there is an important difference between two. Volatility is considered in calculations of the true range envelopes indicator.
How To Trade With True Range Envelopes
Buy Signal: Go long when prices turn up near the lower band.
(Close your position if price turns down near the upper band or if it crosses back below the moving average)
Sell Signal: Go short when price turns down near the upper band.
(Close your position if price turns up near the lower band or crosses back above the moving average).
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