
Moving Average Envelope
Definition
The Moving Average Envelope (MAE) study consists of two lines that envelop a specific moving average. These lines are calculated by adding or subtracting a set number of points or a percentage from the central moving average, giving you a range where the price is expected to stay.

Suggested Trading Use
Pay attention to the envelope to help identify potential overbought or oversold conditions. If the price crosses above the upper band, the asset may be overbought and could be approaching a selling point. Conversely, if it dips below the lower band, the asset may be oversold, and you might consider a buying opportunity.
The MAE provides you with a visual range to better gauge when the price is extending too far from its average, allowing you to act accordingly.