A moving average band, or envelope, forms a channel or zone of commitment around a moving average. A moving average is calculated first, and then a band above and below the average is calculated. Formula: Upper Band: Where: UB = upper band MAt = current moving average value U% = upper percentage value And: Lower Band: Where: LB = lower band MAt = current moving average value L% = lower percentage value The moving average in a moving average envelope can be calculated using any of the moving averages. see, P. J. Kaufman, The New Commodity Trading Systems and Methods, New York: John Wiley & Sons, 1978, pp. 74-79.Moving Average Envelope