For those of you using MT5:
I created an indicator that shows a 2% envelope around the 200SMA.
Why we care
Typically, Dennis’ numbers are considered a valid move when the prices difference between two currencies is > 2.0%. This indicator, when run on H4, on the top choice from Dennis’s SW picks, will show where prices are relative to this 2.0% demarcation.
Since I only really care about prices beyond the 2.0% envelopes, I darkened the prices inside the 2% envelopes.
What does it look like?
ShadedEnvelope.ex5 (30.2 KB)
Is there a version for MT4?
No, I don’t use MT4.
You may need to adjust the colors to suit the candlestick colors that you use. I recommend you build a template.