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Moving average envelope calculator

The average with a line a fixed per cent above and below it: where the close sits, and the width that really fits this market.

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The closes

Oldest first, at least one more than the period, split by commas or spaces.
Bars in the simple average; 20 is common.
Per cent above and below the average; 2.5% is common on daily bars, less on short ones.

The envelope

The close is above the upper line, +3.10% from its 20-bar average.

The lines
The 20-bar average is 2,370.18. With a 2.5% envelope the upper line is 2,429.44 and the lower line is 2,310.93; the close, 2,443.60, is 14.16 above the upper line.
Does the width fit?
In these bars the close went outside a 2.5% envelope on 11 of 61 bars (18%). A width of 3.1% would have held 95% of them: the market swings wider than this envelope.
How it is read
In a range, traders sell near the upper line and buy near the lower one, aiming for the average. In a trend, closes outside the line show strength, and the average itself becomes the line to hold.
Read it with care
The width is fixed, so the envelope does not widen when the market gets wild the way Bollinger or Keltner bands do. A close outside it can keep going.

The close, the lower line, the average and the upper line on the last bars. The last bar is marked.

BarClose priceLowerAverageUpper
7 ago2,391.502,263.022,321.052,379.07
6 ago2,380.502,268.232,326.382,384.54
5 ago2,399.102,274.322,332.632,390.95
4 ago2,412.502,280.132,338.602,397.06
3 ago2,430.802,286.982,345.622,404.27
2 ago2,427.402,295.182,354.032,412.88
1 ago2,432.402,303.162,362.222,421.27
Last2,443.602,310.932,370.182,429.44

Education only, not investment advice. The answer comes from the numbers you typed in, not from your account or the market. Simulated results are hypothetical and have limits: real trading has slippage, gaps, changing results and emotions. Trading leveraged products can lose money quickly, including all of it. Risk warning

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Educational only, not financial advice; trading involves risk.

A fixed band around the average

The envelope is the oldest band on the chart: a simple average, with one line a set per cent above it and one the same per cent below. Because the width is a per cent of the price, not of recent swings, it stays the same in calm and wild markets. That makes it easy to read, and it means the width has to suit the market: this page tells you the width that would have held 95% of your closes.

For bands that widen with the swings, use the Bollinger bands calculator or the Keltner channel calculator; see how stretched the close is with the price z-score, and size the trade with the position size calculator.

Not advice. Arithmetic on the closes you type; an indicator describes the past bars, not the next one.

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