Pocket Option offers numerous trend Indicators and one of them is Envelope Indicator. The Envelope Indicator is an underrated gem and can give really great signals. In this article, I will share everything about Envelope Indicator and how you can use them on the Pocket Option trading platform.

Key Points About Envelope Indicator

• The Envelope indicator also known as the Moving Average Envelope Indicator is a technical analysis tool that helps us to identify the upcoming trends and reversals of security.

• This indicator uses a default 14-period simple moving average and a 0.002 standard deviation.

• The Moving average line in the indicator oscillates around the price both above or below the current price and the moment the price and moving average intersect each other it generates buying and selling opportunities for the traders.

• When the price intersects above the moving average line it signals an upcoming bullish trend. Conversely, When the price intersects below the moving average line it signals an upcoming bearish trend.

• If you want better signals with the Envelope indicator you should always use the conjunction of Envelope indicators with other trend indicators like Parabolic SAR. However, In this article, I am going to combine the two moving averages which will filter out the unnecessary market noise and will give you great results.

Adding Envelope Indicator on Pocket Option

Adding an Envelope Indicator on the Pocket Option is very easy. Naturally, you need to log into your Pocket Option account first. Next, click on the security button and select your desired currency also, make sure to set your default chart to candlestick and select the time frame of the chart.

Now, click on the indicator button at the bottom left of the chart and search for the Envelope indicator in the list. You can even configure the indicator as per your requirements. You need to reduce the time frame of the indicator if you are going to trade in a short time frame chart and vice versa increase the indicator period if you are going to trade in a long time frame.

How to use Envelope Indicator?

Solo Envelope Indicator: You can this indicator on alone on the Pocket Option chart. You just need to focus on the intersection of the Envelope Indicator Moving Average Line and the price. When the price intersects above the Envelope Indicator line it signals an upcoming bullish trend and similarly, When the price intersects below the Envelope Indicator line it signals an upcoming bearish trend.

Conjuction with other trend indicators: As I mentioned above If you want to reap high-quality results you should combine the Envelope Indicator with other trend indicators, Today, In this article, I am going to use one more simple moving average. Firstly, click on the indicator button and select Moving average from the list next, select type as SMA and set the period to 7.

Now, you need to focus on the intersection of the two moving averages. when the SMA 7 line intersects above  SMA line 14 it signals a bullish trend and conversely, when the SMA line 7 intersects below  SMA line 14 it signals a bearish trend.