Envelope: What is the Meaning of Envelope?
An envelope is a technical indicator that is usually presented on a price chart with a high and a low limit. The most common example of an envelope is a moving average envelope, consisting of two moving averages that define the upper and lower levels of the price range. Envelopes are widely used to help traders and investors identify more buying and selling conditions, as well as extreme trade boundaries.
- In technical analysis, envelopes refer to trend lines formed above and below the current price.
- The upper and lower bands of the envelope are usually formed by a simple moving average and a default distance above and below the moving average, but can be created with the help of different techniques.
- Many traders respond to selling signals when the price breaks or breaks the band from the top and buys signals when the price hits or breaks the lower band of the channel involved.
Meanings of Envelope
To keep letters or documents Flat paper container with key.
A cover or containment structure or roof.
Sentences of Envelope
It's a quicker communication than putting a pen on a piece of paper, finding an envelope, licking a lid, pasting a stamp and putting it in a mailbox.
Synonyms of Envelope
enclosure , wrapping , sheath , cover, casing , hide , pocket , jacket , sleeve, box , covering , vesicle , pouch , wrapping, skin , container , case , coat , coating , cloak , covering, shell , wrap, cover , receptacle , bag , wrapper