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 models—Keltner Channels, ATR Bands, and Bollinger Bands—while keeping a consistent visual and behavioral structure.

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Key Features

• Selectable envelope type:
  Keltner – smoothed true range, ideal for trend acceptance and volatility structure.
  ATR Bands – raw volatility expansion/contraction, useful for risk and stop context.
  Bollinger Bands – standard deviation–based 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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