[TTI] Minervini Envelopes

12 Mac 2023

––––History & Credit
This is an indicator that I saw Mark Minervini using. Picture attached to the Session he showed it.

–––––What it does
The indicator is a Envelopes band. Envelopes represent bands that are plotted in a certain, identical relationship above and below the Moving Average. Envelopes are a very complex theme with many interpretation and trading rules. Basically, envelopes capture a significant part of price movements. Concrete trading signals are released if prices approach or move away form their envelope.

Envelopes are plotted around a Moving Average in a constant percentage distance. Hence they are added to or subtracted from this average. Both envelope lines thus define the prevailing trading range.

–––––How to use it
While several different trading rules are available, the most simple approach uses the price band as an entry and exit point. When price penetrates the upper price band, you initiate a long position or buy. If you have an existing short position, you close out shorts and go long. Conversely, when prices penetrate the lower price band, you close out long positions and go short.

–––––How to Mark Minervini uses it
He applies it to the SPY ONLY and ONLY on WEEKLY! When the price action is above the Envelope then he is in his long term portfolio (he disclaimed it is only a small portfolio for his daugther!)

14 Mac 2023

Nota Keluaran

UPDATES
👉 Fine tuned calculations
👉 Added separate factors for the upper and lower band and put the exact numbers used by Mark
👉 Added the ability to turn on and off the background coloring
👉 Added the ability to turn on and off the envelopes (could leave only the background coloring)