Envelopes Indicator is an indicator that shows the range in which the price is moving. It consists of two lines (upper and lower), which are built around the moving average at a certain distance (in percent). This tool helps to find overbought and oversold zones, as well as to determine the moments of price reversal.
How to add an indicator to VOOI
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Open the vooi terminal
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Click on the indicators tab
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search for the name of the indicato
How Envelopes Indicator works:
The indicator is calculated based on the moving average (SMA) to which a certain percentage is added and subtracted. When the price goes outside the channel boundaries, it may signal an imminent reversal or continuation of the trend.
Price at the upper boundary — possible overbought zone (sell signal).
The price at the lower boundary is a possible oversold zone (a buy signal).
How to use Envelopes on VOOI
Trade on bounces:
Buy when the price touches the lower line — an upward reversal is expected.
Sell when the price touches the upper line — a downward reversal is possible.
Trading according to the trend:
If the price fixes above the upper boundary, it confirms the bullish trend — you can open long.
If the price is below the lower boundary and stays there, it confirms a bearish trend — consider shorting.
Filter out false signals:
Don’t react to short-term out-of-bounds. Confirm signals with other indicators (e.g. RSI or MACD).
Trading Strategies with Envelopes on VOOI
Border to Border:
When the price reaches the upper boundary, look for a selling moment.
When the price touches the lower boundary, look for a buying opportunity.
Breakout and trend following:
If the price breaks one of the boundaries and consolidates — open a position in the direction of the breakdown.
Example of use on VOOI
Suppose an asset on the VOOI platform is moving in a sideways corridor. When the price touches the lower boundary of the Envelopes and the RSI shows oversold, this is a buy signal.
If the price reaches the upper boundary and RSI indicates overbought, it is a signal to take profits or short.
🚀 Tips for working effectively with Envelopes
Customize the parameters: Choose the optimal deviation percentage and SMA period to suit your trading style. For example, for active markets, values of 10–20 periods and 1–2% deviation would be suitable.
Look for confirmation: Don’t rely on Envelopes alone. Confirm signals with volume and other indicators.
Follow the trend: In trending conditions, trade on the breakout and in sideways conditions, trade on bounces.
👉 Envelopes Indicator is a useful tool to identify overbought and oversold zones. On VOOI, it helps you find entry and exit points more accurately, improving your trading strategy.
📣 Ready to trade smarter?
👉 Start now: vooi.io
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