Trading: SELL @ $0.725
Signal Strength: MEDIUM
Indicator is best used in conjunction with additional indicators as it has the ability to highlight potential overbought or oversold levels. This indicator utilizes upper and lower bands to visually represent price extremes associated with the bands. Additional value can be added to the trading strategy by accessing divergences between price and volume.
Danakali (ASX:DNK) current trading has maintained the Envelope Bands to oversold status and signalled the continuation of the bearish trading conditions. Currently, the Lower Band is 0.76.
Moving Average Envelopes are percentage-based envelopes set above and below a moving average. The moving average which forms the base for this indicator can be a simple or exponential moving average. Each envelope is then set the same percentage above or below the moving average. This creates parallel bands that follow price action. With a moving average as the base Moving Average Envelopes can be used as a trend following indicator.
Calculation: Moving Average Envelope:
1) Upper Envelope: 20-day SMA + (20-day SMA x .025);
2) Lower Envelope: 20-day SMA - (20-day SMA x .025);
PROFILE: Danakali (DNK.AX)
Stock Exchange: ASX
Ticker Codes: | DNK.AX | ASX:DNK |
Danakali Limited engages in the exploration of minerals in Eritrea, East Africa. It primarily holds interests in the Colluli potash project located in the Danakil region of Eritrea. The company was formerly known as South Boulder Mines Ltd. and changed its name to Danakali Limited in June 2015. Danakali Limited is based in Subiaco, Australia.
Moving Average EnvelopeDownload
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