26# Envelope Reversal Trading MT5

Submit by Janus Trader

Envelope Revesal is a trend reversal momentum trading system suitable for day trading with 15 and 30 minute time frames but is also good for higher time frames. The reversal is based on the overbought and oversold areas drawn on the price action graph interpreted by the envelope.

Setup and Strategy

Time Frame: 15 minutes or higher

Currency Pairs: Majors and Minors

Platform: MT5

MT5 Indicators

Envelope: Moving Average (SMA) with periods 55, close, including levels at +-80, +-310, +-340, +-550.

Stochastic (34,5,5), close.

Stochastic (55,8,8), close.

Stochastic (100,8,8), close.

Trading Rules

Long Entry

Price touches or breaks the penultimate or last lower band and starts retracing upwards.

All three stochastics cross upwards from the oversold area.

Sell
The price touches or breaks the penultimate or last upper band and begins to retrace downwards.
The three stochastics cross downwards from the overbought area.

Exit position
Initial stop loss on the next band or previous high/low level.
Profit targets the next band, the central one or the opposite crossing of the stochastic.

This Winning forex strategy, happy pips!!