What is the use of Watson envelope indicator?

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Sarah Quinn
Answered 8 months ago
<p id="isPasted">The Nadaraya-Watson Envelope Indicator is a dynamic volatility indicator that adapts to changing market conditions by smoothing price data using a kernel regression technique. It calculates upper and lower bounds based on the Average True Range (ATR) and specified factors to provide boundaries for extreme price movements.</p><p>This indicator is designed to help traders identify potential reversal zones and confirm the direction of the trend by looking at the relationship between the price and the envelopes.</p>
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Israel Herrera
Answered 1 week, 5 days ago
<p id="isPasted">The Nadaraya-Watson Envelope Indicator is a technical analysis tool used by traders to identify overbought/oversold conditions and potential trend reversals by creating dynamic upper and lower bands around price action. It uses a kernel regression technique to smooth price data and create more stable envelopes, which can help in identifying significant trends and generating buy/sell signals when the price crosses these bands.&nbsp;</p><p><br></p>