The EMA Envelope draws 2 lines around an exponential moving average.
Upper line is placed at a fixed ticks distance above the EMA, while the Lower line is placed at same distance below the EMA.
That means the the total width or distance between the 2 lines of the envelope is equal to twice the value of the separation input parameter.
This indicator is used on several setups ;
RISK DISCLOSURE (See CFTC RULE 4.41) :
Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.