This is an updated version of Elders Auto envelopes with all the latest averages, had to scrap g channel on this version, for some reason not working.
Mladen's explanation:
Envelope or channel lines are set parallel to the moving average (parallel to the slow MA if you use two MAs). The two channel lines must contain:
- Approximately 95% of all prices for the past two or three months on a daily chart
- Only the extremes protruding outside the bands
Channel lines provide attractive profit targets – sell longs near the upper line and cover shorts near the lower line.
The auto envelope automatically sizes channels by calculating a standard deviation for the last n bars. It is designed to change value at most once a week (once a month on a weekly chart), making it suitable even for intra-day data (use the ‘Fixed channel size’ parameter to switch from one mode to the other).
