stelaraX - Envelope

stelaraX – Envelope

stelaraX – Envelope is a price channel indicator based on a moving average with fixed percentage bands above and below the average. It is designed to visualize dynamic support and resistance zones and highlight potential overextended market conditions.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
stelarax.com


Core logic

The indicator calculates a central moving average using either:

* exponential moving average (EMA)
* simple moving average (SMA)

Upper and lower envelope bands are then derived by applying a fixed percentage offset to the moving average.

The distance between price and the envelope bands reflects relative market extension. Price near or beyond the outer bands may indicate overbought or oversold conditions depending on context and trend direction.


Visualization

The script plots:

* the central moving average
* an upper envelope band
* a lower envelope band

The area between the upper and lower bands is softly filled to improve visual clarity and make price deviations easy to identify at a glance.


Use case

This indicator is intended for:

* identifying dynamic support and resistance zones
* detecting overextended price conditions
* mean reversion and pullback analysis
* trend-following confirmation when combined with other indicators
* channel-based trade planning

For traders who want to combine classical price channels with modern AI-driven chart analysis, additional tools and insights are available at stelarax.com


Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.