Envelopes - traditional general approach

Envelopes indicator consists of a moving average plus and minus a certain defined percentage deviation. The Envelopes indicator serves as an indicator of overbought or oversold conditions, visual representations of price trend, and the indicator of the detection of the price breakouts. Buy when price penetrates (or bounced to above) the lower envelope and closes back inside the envelope. Sell when the price penetrates (or bounced to below) the upper envelope and then closes back down inside the envelope.