# Price Envelope

The Price Envelope is calculated using a pair of lines which are a fixed percentage above and below an Exponential Moving Average of the closing price. The Price Envelope study provides dynamic support and resistance lines.

# Price Envelope

The **Price Envelope** study provides dynamic support and resistance lines.

## Price Envelope Calculation

The Price Envelope is calculated using a pair of lines which are a fixed percentage above and below an Exponential Moving Average of the closing price. Buy signals are issued when the price reaches its lower envelope line and sell signals are issued when the price reaches its upper envelope line. The Price Envelope requires two parameters: the number of periods over which to compute the moving average and the percentage to use for the envelope lines.

## Application of Price Envelope

See Support Level and Resistance Level