Binary Options Envelope Indicator Tips


Envelope Indicator Description

Envelope indicator represents two lines which repeat a shape of a certain moving average which in its turn moves from it on a particular distance (depends on settings) thus forming a channel.  This channel plays a very significant role because depending on its borders, real market volatility is calculated.

InvestManiacs advise you to use only reputable US binary options brokers. Try BinaryMate

Envelope indicator is a little bit similar to Bollinger Bands yet there are certain distinctions. The main and most important difference is a diapason of price changes. In both cases, this field is located within the border on the first and second line. In case if the price on Forex increases and reaches an up border (first moving average),then it is necessary to open short-term positions. But if the currency price moves down to a lower moving average, then an Envelope indicator demonstrates a sign of opening long-term positions to traders.

Usage of an Indicator

The principle of an Envelope indicator usage is based on price movement which means that whatever the jump in prices is, the figures always return to the primary number. As a rule, situations when prices get very low or high depend on activity of a “bear” (increase) or “bull” (decrease). In this case, the figures reach maximum-extremum. In simple words, in the majority of the time, price for assets is stable and extremum appears as a result of balance interruption caused by buyers and sellers.

In a visual display, Envelope indicator covers a price chart with the help of a specific “ribbon”. If there are some powerful price movements for assets on Forex market, then most probably it is the situation when the price moves beyond the indicator limits. The same situation happens with Bollinger Bands when the “ribbon” goes beyond the border. Yet, nevertheless, the prices return to their primary positions.

Resume: Envelope Trading Strategy

It is very important to know exactly how to work with both envelope indicator as a trading system and strategies based on it. It is necessary to select a deflexion coefficient of indicator lines. One should also know that the lower line serves as a support whereas the upper one as a resistance. The best time to buy is when the price reaches an upper border whereas sell when it reaches a lower border. Envelope trading strategy is used for short-term trading.

As in many cases, a trader should realize that he/she cannot completely rely on an indicator as it is just an addition to analytical work and technical analysis. Moreover, an important role belongs to a broker that a trader works with as well as personal knowledge, skills and experience in trading on Forex market.

TOP BINARY OPTIONS BROKERS

BROKER Details U.S.-friendly? Info RATING
Binary Mate
Binary Mate

TRADE!
Min. deposit: $250
Min. invest.: $1
Return: 92%
Trading: CFD, Forex, Binary
Autotrade: GO!
REVIEW
4.9
Finrally
Finrally

TRADE!
Min. deposit: $250
Min. invest.: $10
Return: 91%
Trading: CFD, Binary
Autotrade: GO!
NoREVIEW
4.8
24Option
24Option

TRADE!
Min. deposit: $250
Min. invest.: $24
Return: 88%
Trading: CFD, Forex, Binary
Autotrade: GO!
NoREVIEW
4.7

More related articles:

 US Binary Options Brokers List
As you begin to venture into binary options, one of the vital things that you’ll need to figure out is what kind of brokerage service you will use. Fortunately, there are a number of brokers out there that are reliable and effective as trading partners.InvestManiacs advi...
 US Binary Options Brokers
Trading binary options in USA has become a popular way to invest and grow your funds or to supplement an existing investment portfolio. It is exceptionally easy to start trading; you simply need a basic understanding of the principles behind each option. Th...
 Trusted US Binary Options Brokers
Trustfulness is the primary factor, which you should consider, when searching for the options operating website. Operating in all kinds of formats and options is not something innovative, thus it is necessary to search for professional brokers, which offer ...
 Reliable US Binary Options Brokers
There are a limited number of binary brokers who are licensed and approved to offer their services to US based traders. If you are based in the US and looking for one of the US binary options brokers then it is important to consider the track record of any brokerage. It is imp...
 Recommended US Binary Options Brokers
If you're an US-based binary options trader is not so easy for you to find a trustworthy brokerage company since a majority of European brokers aren't accepted by strict regulation of your country of residence. However, times have changed and for now online trading is ...
 Legit US Binary Options Brokers
When looking for a broker that accepts US traders, you have to consider these aspects: trustworthiness, wide range of binary options for trading (as well as deposit options),payout percentage and quick release of withdrawals and payments. From among the list of US binary opti...
TOPICS:  
Binary Option Auto Trading

 

TRADE WHILE YOU SLEEP!

SMART AUTOMATED TRADING SOFTWARE

 

100% Secure