BT Volatility Envelope BT Envelope is a flexible, multi-model volatility envelope designed to help traders identify contextual trade areas rather than standalone signals.
Instead of forcing a single volatility framework, BT Envelope allows users to switch between the three most widely used envelope modelsโ Keltner Channels , ATR Bands , and Bollinger Bands โwhile keeping a consistent visual and behavioral structure.
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Key Features
Selectable envelope type:
Keltner โ smoothed true range, ideal for trend acceptance and volatility structure.
ATR Bands โ raw volatility expansion/contraction, useful for risk and stop context.
Bollinger Bands โ standard deviationโbased mean reversion and overextension zones.
Configurable envelope base:
Multiple MA types supported (EMA, SMA, WMA, DEMA, TEMA, TRIMA, KAMA, MAMA, T3).
User-defined MA length.
Dual envelope spans:
Inner and outer bands using independent multipliers.
Visually separates rotation vs extension areas.
Optional higher-timeframe projection:
Plot envelopes from a higher timeframe directly onto a lower-timeframe chart.
Useful for aligning LTF execution with HTF structure.
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How Traders Use BT Envelope
BT Envelope is not a buy/sell indicator. It is a context engine .
Traders use it to:
Define high-probability trade zones (mean, inner span, outer span).
Distinguish between rotation, trend acceptance, and overextension regimes.
Frame entries and exits around volatility structure rather than arbitrary levels.
Align lower-timeframe setups with higher-timeframe volatility boundaries.
Common techniques include:
Buying pullbacks toward the Envelope Base during trend acceptance.
Fading price at outer envelope extremes during range or exhaustion conditions.
Using envelope width and slope to gauge volatility expansion or compression.
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