Indicator Description
ENE (Envelope) is a trend indicator that reflects the strength and direction of market trends by calculating price trend changes.
Calculation Principle
ENE is calculated using the following formula:
MID = MA(Close, timeperiod)
UPPER = MID * (1 + deviation / 100)
LOWER = MID * (1 - deviation / 100)Where MA is the moving average and deviation is the envelope width percentage.
Usage Scenarios
- Trend direction judgment
- Trend strength analysis
- Trend reversal identification
- Trading signal generation