Moving Average Envelope (MAE)

Moving Average Envelope (MAE)

The Moving Average Envelope creates an envelope around a moving average to find overbought or oversold conditions, to smooth the price trend and as an indicator of price breakouts. The moving average envelope uses a moving average as the center line with a lower and upper bands added a percetnage above and below the center line.

Configuration Options

  • Field: Price or combination of prices to use as the base for average calculations. Possible values include:
    • Open
    • High
    • Low
    • Close
    • Adjusted Close
    • HL/2 \( \left ( \frac{High + Low}{2} \right ) \)
    • HLC/3 \( \left ( \frac{High + Low + Close}{3} \right ) \)
    • HLCC/4 \( \left ( \frac{High + Low + Close + Close}{4} \right ) \)
    • OHLC/4 \( \left ( \frac{Open + High + Low + Close}{4} \right ) \)
  • Period: Number of bars to use in the calculations.
  • Shift Type: Type of offset (percent or points)
  • Shift: Percentage or number of points to offset above or below the average.
  • Moving Average Type: Type of moving average to use in the calculations:
    • Simple
    • Exponential
    • Time Series
    • Triangular
    • Variable
    • VIDYA
    • Weighted
    • Welles Winder
    • Hull
    • Double Exponential
    • Triple Exponential
  • Channel Fill: Whether to shade the area between the top and bottom lines.
  • Color Selectors: Colors to use for graph elements.
  • Display Axis Label: Whether to display the most recent value on the Y axis.


Envelopes start with any moving average type (see Moving Averages for formulas) and then creates an offset x% above or below the average or an offset Y points above or below the average.

  • For percentage envelopes:

    Upper band = moving average + x%(moving average)
    Lower band = moving average – x%(moving average)
  • For points envelopes:

    Upper band = moving average + constant
    Lower band = moving average – constant