Trade Easier with Envelopes

When we find a way than most trading easy and profitable. There are many ways to generate profit, but they are difficult and elaborate sets in use. One of the default MT4 indicators that are easy to use and profitable are the envelopes. The envelopes indicator is actually made up of two Moving Average with the period parameter 14. But both the MA not mutually aligned with each other, but both are running parallel in accordance with the direction of the market is going.

We can place the envelopes indicator on MT4 with steps as follows:
1. Select the icon "List of indicators" and then select the type of indicator "Trend" then it would appear many options. Select "Envelopes"

2. a dialog Appears that shows the default parameters indicator Envelopes, i.e. from 14.

3. then click "OK" then the Envelopes indicator will appear as follows:

Parts of the Envelopes indicator:

The envelopes indicator consists of two Moving averages that are blue and red.
Blue line

• Blue line means a bullish signal pointer. 
• The blue line is also a dynamic resistance level, meaning the resistance moves always follow the direction of the market price.
• The blue line as well as a place to put up a stop loss (SL) at any open positions sell.

Red Line

• The red line as signal a bearish hint. 
• The red line is also a dynamic support level following the direction as to where the market price moves.
• The red line as well as a place to put up a stop loss (SL) at each position buy.

Space Consolidation (Sideways)

• While the spaces in between the blue and red lines are consolidated. 
• When prices are in a consolidation in the space (between the blue and red lines) then we don't enter the market. 
• We wait until the price out of space consolidation that. 
• If the price out of the blue line means going breakout and prices will rise (bullish).
• If prices get out of the line of Red means going breakout down and prices will go down (bearish). 

But, keep in mind that the movement is not as smooth as we imagine. Usually the case price movements up and down in such a way that it can make us get screwed. Therefore, it should be a concern is the blue and red lines.

Then, how do I open the correct position by using the Envelopes indicator?
See the following image:

Enter BUY

• We recommend that you enter into the market when the London session open.
• Wait until the rate reaches the blue line.
• If the price is already past the blue line then appears bullish candle so that the price exceeds the price before then means the market is bullish. Soon we open BUY position.
• Install the stop loss (SL) on the red line.

Enter SELL

• We recommend that you enter into the market when the London session open.
• Wait until the price has reached the red line.
• If the price is already past the red line then appeared bearish candle so the price is lower than previous rates will mean the market is bearish. We SELL open positions immediately.
• Install the stop loss (SL) on the blue line.

Pending Order
Pending orders are performed by placing two pending orders at once i.e. the Buy Stop and Sell Stop

Buy Stop

• Before the London session open, install a buy stop above the blue line (about 40 pips)
• Install the TP around 500 pips
• Install the stop loss (SL) on the red line.

Sell Stop

• Before the London session open, install a sell stop below the red line (about 40 pips)
• Install the TP around 500 pips
• Install the stop loss (SL) on the blue line.

If one of the pending order is touched then close one of the pending orders are not touched.
Do pending orders before London open session or before there is important news release.