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Moving Average Envelopes

Moving Average Envelopes are lines plotted at a fixed percentage above and below a moving average (usually SMA). They help identify overbought and oversold conditions, as well as trend direction.

Lines

  • Upper Envelope: SMA + (SMA * percent / 100)
  • Middle Line: Simple Moving Average (SMA)
  • Lower Envelope: SMA - (SMA * percent / 100)

Parameters

  • period (default: 20): Period for the moving average
  • percent (default: 2): Envelope distance in percent

Usage Example

import { Envelopes } from '../src/envelopes';

const envelopes = new Envelopes();
const result = envelopes.nextValue(close);
// result: { lower, middle, upper }

Returns

An object with the following properties:

  • lower: Lower envelope value
  • middle: Middle line (SMA) value
  • upper: Upper envelope value