ATR-Based Envelopes for Volatility-Scaled Price Bands

Summary

This MetaTrader 5 indicator plots upper and lower price bands around a moving average. Its ATR mode scales the bands using the symbol’s average volatility, while an optional standard Envelopes mode displays percentage-based bands. Users can show either type or both at once, making it possible to compare fixed-percentage deviation with a volatility-adjusted measure of price distance from the average.

The settings control the ATR and moving-average periods, moving-average method and input price, standard deviation percentage, and display colors. The description explains the indicator’s construction and configuration, but gives no trading rules, performance results, or evidence that either band type predicts reversals or breakouts. It is therefore a charting tool for measuring price deviation, not a tested strategy. Its usefulness depends on how a trader interprets the bands and validates any signals across instruments and market conditions.

Key ideas

• The indicator measures price distance from a moving average with upper and lower bands.
• ATR-based bands scale deviation using the symbol’s average volatility.
• A standard Envelopes mode uses a percentage deviation from the moving average.
• The user can display ATR bands, standard bands, or both together.
• The description provides configuration details but no tested trading signals or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.