Trend Envelopes From Percentage Price Changes
Summary
The Trend Envelopes indicator uses percentage price deviation to decide whether a trend has changed or remains in place. Its calculation needs only a deviation percentage as a parameter and internally uses closing, high, and low prices; the described version does not allow those inputs to be changed.
The document also notes that the indicator can serve as a support and resistance reference. It does not explain the exact rules for setting envelope levels, provide examples, or report backtest results, so it offers only a brief conceptual description. Traders would need further specifications and testing to determine how the indicator behaves across assets and market conditions.
Key ideas
- The indicator uses percentage price deviation to identify trend changes or continuation.
- Its calculation internally uses close, high, and low prices.
- The described version exposes the deviation percentage as its only parameter.
- The envelopes may also be used as support and resistance references.
- No detailed rules, examples, or performance evidence are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.