Three Moving-Average Deviation Envelopes Displayed as a Price Cloud

Summary

The document describes an indicator that displays three envelope channels around a moving average. Each channel uses a different deviation value, producing nested bands that can be visualized as a cloud. Color shading distinguishes the inner channel from the portions of the second and third channels that extend beyond the bands inside them. The description explains how the display is layered, rather than prescribing a trading signal.

The implementation depends on a separate smoothing library for MetaTrader 5 and references an article that explains its averaging classes. The document provides no specific deviation settings, rules for interpreting touches or crossings, market examples, or performance results. As a result, it introduces a way to visualize price distance from an average but does not establish whether the envelopes identify trend, volatility, reversals, or actionable trade entries. Any use as a strategy would require parameter choices and independent testing.

Key ideas

• The indicator draws three nested envelope channels around a moving average.
• Different deviation values determine the width of each channel.
• Color fills distinguish the inner envelope from the outer extensions.
• The implementation relies on a separate MetaTrader 5 smoothing library.
• The document provides no trading rules or evidence of strategy performance.

Tags

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