Auto Envelope is an envelope indicator that automatically changes the channel size calculating the standard deviation for the last 100 bars. It is designed to change the value no more than once a week, which makes it suitable even for intraday data.
It has four inputs:
- MA period - moving average calculation period
- MA method - moving average calculation method
- Deviation factor - standard deviation ratio
- Deviation period - standard deviation calculation period
Calculation:
Central = MA Top = Central + Channel / 2.0 Bottom = Central - Channel / 2.0
where:
Channel = StdDev * Deviation factor * Central / 10.0 StdDev - StdDev(Raw, Deviation period) Raw = 2.0 * Max(Abs(High-MA), Abs(Low-MA)) / MA MA - MA(Close, MA period, MA method)
