Envelope Stock Screener

By setting an upper and lower band around a moving average, the Envelope Channel Indicator assists in spotting potential trends, support and resistance levels, and trading opportunities . . . traders can make informed decisions on their entry/exit, where to set stop-loss orders, and how to manage risk

6 minutes

This post focuses on customizable Envelope Channel factory scans, which can be edited, modified, or rewritten and then scanned using ChartAlert’s native stock screener or technical analysis scanner, namely the Basic Scanner and Advanced Scanner.

Display Envelope Values

Tags: envelope indicator, envelope scanner

List symbols
Add Column Envelope Lower(20,5) as EL
Add Column Envelope Middle(20,5) as EM
Add Column Envelope Upper(20,5) as EU
Apply to NSE

This scan performs computes and displays the 5% envelope of the 20-period Simple Moving Average (SMA) for all symbols in the National Stock Exchange (NSE). If no specific Moving Average type is specified, the default option of “SMA” is utilized.

OPTION 1

The Moving Average type can be modified, along with the time period and % vertical shift.

List symbols
Add Column ENVL(100,1.5, EMA) as EL
Add Column ENVM(100,1.5, EMA) as EM
Add Column ENVU(100,1.5, EMA) as EU
Apply to NSE

Close Below Lower Envelope

Tags: close below lower envelope, lower envelope breakout, lower envelope crossover, stocks above lower envelope, stocks below lower envelope

List symbols where Close is below the Envelope Lower(20,5)
Add Column Envelope Lower(20,5) as ENVL
Apply to NSE

This scan examines symbols to identify instances where the closing price is trading below the lower envelope, which is created using a 20-period Simple Moving Average (SMA) with a 5% vertical shift. It does not focus on detecting crossovers.

OPTION 1

If you wish to modify the scan to identify crossovers that occur below the lower envelope after remaining above it for 3 bars, then you can consider Option 1. Additionally, you will need to change the type of moving average and adjust the vertical shift accordingly.

List symbols where Close has crossed below Envelope Lower(20,1.5,EMA) after remaining above for 3 bars
Add Col ENVL(20,1.5,EMA) as ENVL
Apply to NSE

OPTION 2

You can also use the abbreviated format by substituting the scan with the following alternative:

List symbols where Cls < ENVL(20,5)
Add Col ENVL(20,5) as ENVL
Apply to NSE

Close Above Upper Envelope

Tags: close above upper envelope, close crossing upper envelope from below, price above upper envelope, stocks closing above upper envelope, stocks crossing upper envelope

List symbols where Close is above the Envelope Upper(20,5)
Add Column Envelope Upper(20,5) as ENVU
Apply to NSE

This scan searches for specific symbols in which the closing price is higher than the upper boundary of the envelope created by applying a 20-period Simple Moving Average (SMA) with a 5% upward adjustment. It doesn’t analyze situations where the price lines intersect.

OPTION 1

To identify instances where the price line crosses above the upper boundary of the envelope after staying below it for 3 periods, modify the scan as described below. Additionally, the type of moving average and vertical shift are adjusted.

List symbols where Close has crossed above Envelope Upper(20,1.5,EMA) after remaining below for 3 bars
Add Col ENVU(20,1.5,EMA) as ENVU
Apply to NSE

OPTION 2

To simplify the use of “Envelope Upper,” you can make a modification to the scan. Instead of using the long form, use the short form in the following manner.

List symbols where Cls > ENVU(20,1.5,EMA)
Add Col ENVU(20,1.5,EMA) as ENVU
Apply to NSE

Crossed Below Middle Envelope

Tags: envelope middle line, middle line envelope crossover, middle line envelope screener

List symbols where Close has crossed below the Envelope Middle(20,5)
Add Column Envelope Middle(20,5) as ENVM
Apply to NSE

This scan examines symbols to identify instances where the closing price has recently crossed below the middle envelope. The middle envelope is calculated and shown in the report.

OPTION 1

To search for a situation where the crossover occurs below the middle envelope after staying above it for 10 bars, modify the scan in the following manner. Additionally, the type of moving average and vertical shift should be adjusted.

List symbols where Close has crossed below Envelope Middle(100,1.5,EMA) after remaining above for 10 bars
Add Col ENVM(100,1.5,EMA) as ENVM
Apply to NSE

Crossed Above Middle Envelope

Tags: envelope middle line, middle line envelope crossover, middle line envelope screener

List symbols where Close has crossed above the Envelope Middle(20,5)
Add Column Envelope Middle(20,5) as ENVM
Apply to NSE

This scan looks for specific patterns where the closing price has recently crossed above the middle envelope line. The middle envelope line is calculated and shown in the report.

OPTION 1

To look for a crossover above the middle envelope line after being below it for 3 consecutive bars, modify the scan as described below. Additionally, the type of moving average and vertical shift will be adjusted.

List symbols where Close has crossed above Envelope Middle(20,1.5,EMA) after remaining below for 3 bars
Add Col ENVM(20,1.5,EMA) as ENVM
Apply to NSE

Lower Envelope Support

Tags: stocks touching lower envelope

List symbols where Price is touching Envelope Lower(100,2,EMA)
And Close is above Envelope Lower(100,2,EMA)

Add Column Envelope Lower(100,2,EMA) as ENVL

Apply to NSE

This scan looks for symbols in which the lowest price has gone below the 2% lower envelope, which is determined by a 100-period Exponential Moving Average (EMA), but the price has not closed below it. The phrase “Price is touching” indicates that any part of the price bar is making contact with the envelope.

OPTION 1

To express the same script in a different manner, you could use the following phrasing:

List symbols where Low is below ENVL(100,2,EMA)
And Close is above ENVL(100,2,EMA)

Add Column ENVL(100,2,EMA) as ENVL

Apply to NSE

Upper Envelope Resistance

Tags: stocks touching upper envelope

List symbols where Price is touching Envelope Upper(200,1.5,EMA)
And Close is below Envelope Upper(200,1.5,EMA)

Add Column Envelope Upper(200,1.5,EMA) as ENVU

Apply to NSE

This scan is designed to identify symbols where the highest price of a trading session has surpassed the upper limit of the envelope, but the closing price remains below it. When we say “Price is touching,” it means that any portion of the price bar is in contact with the envelope.

OPTION 1

Alternatively, you can achieve the same outcome using the following approach:

List symbols where Envelope Upper(200,1.5,EMA) is between High and Close
Add Column Envelope Upper(200,1.5,EMA) as ENVU
Apply to NSE

For comprehensive insights into the Envelope Channel indicator, including its calculation methodology, effective utilization in trading, applicability to both trading and investing purposes, as well as an exploration of its advantages and limitations as an indicator, click here.

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