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Forex Glossary

The Industry's Most Important Terms Explained

The forex industry is made up of countless definitions and it's easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we've compiled one which aims at explaining key definitions in the simplest way possible. This way, you'll never be lost or confused again!


Envelopes

It’s a Technical Analysis indicator formed by two simple moving averages.  One of them is shifted upward and the other one downward by a fixed percentage.  The percentage is analogous to market volatility.  The two shifted moving averages define the upper and lower bands of the envelope. Buy signals are generated when prices reach the lower band whereas sell signals are generated when prices reach the upper band.

Category: Technical Indicators

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