Indicator "Envelopes": how to use price bands?

The "Envelopes" indicator consists of two levels (upper and lower), which are placed at a certain distance from the moving average. These bands help traders identify potential overbought or oversold conditions in the market. When the price approaches the upper band, it may signal excessive buying activity, and when the price reaches the lower band — potential oversold conditions. This indicator is ideal for short-term trading, where it is crucial to react promptly to market changes. It is important for traders to use "Envelopes" in conjunction with other tools to confirm signals and minimize risks.