# AO Envelopes Strategy

Uses Awesome Oscillator and Envelopes to generate trading signals based on divergence, fake-outs, and breakout patterns.

Canonical: https://prismaticalgos.com/compendium/algo/309-ao-envelopes-strategy
Record ID: 309
Catalog rank: 1990 (reading order, not performance)
Snapshot: 2026-10-31 15:46 UTC
Family: Trend Following & Directional (A)
Source: https://www.mql5.com/en/articles/18842
Evidence label (unverified): source_code

## Scope and limitations

These are machine-extracted research records, not verified trading systems. Catalog rank measures specification detail and claimed evidence, not profitability. The catalog extraction pipeline did not independently backtest these records. Its separate selected testing ledger does not validate the wider corpus. Rules, labels and parameters can be incomplete or wrong; consult the original source and its reuse terms.

No endorsement, ownership claim or source-code reuse permission is implied.

## Extraction warnings

No automated warnings recorded; this is not validation.

## Recorded profile

- symbols: USDJPY
- timeframes: M30
- sessions: any
- market_regime: trending|ranging|volatile|breakout|any

## Indicators

- Awesome Oscillator: {}; applied to: close
- Envelopes: {"deviation": 2, "period": 20}; applied to: close

## Recorded long-entry rules

- AO(X() + 2) > AO(X() + 1) && AO(X() + 1) < AO(X()) && Close(X() + 2) > Envelopes_Mid(X() + 2) && Close(X() + 1) <= Envelopes_Mid(X() + 1) && Close(X()) > Envelopes_Mid(X())
- AO(X() + 2) > AO(X() + 1) && AO(X() + 1) < AO(X()) && AO(X() + 1) > 0.0 && Close(X() + 2) <= Envelopes_Mid(X() + 2) && Close(X() + 2) >= Envelopes_Lo(X() + 2) && Close(X() + 1) <= Envelopes_Mid(X() + 1) && Close(X() + 1) >= Envelopes_Lo(X() + 1) && Close(X()) <= Envelopes_Mid(X()) && Close(X()) >= Envelopes_Lo(X())

## Recorded short-entry rules

- AO(X() + 2) < AO(X() + 1) && AO(X() + 1) > AO(X()) && Close(X() + 2) < Envelopes_Mid(X() + 2) && Close(X() + 1) >= Envelopes_Mid(X() + 1) && Close(X()) < Envelopes_Mid(X())
- AO(X() + 2) < AO(X() + 1) && AO(X() + 1) > AO(X()) && AO(X() + 1) < 0.0 && Close(X() + 2) >= Envelopes_Mid(X() + 2) && Close(X() + 2) <= Envelopes_Up(X() + 2) && Close(X() + 1) >= Envelopes_Mid(X() + 1) && Close(X() + 1) <= Envelopes_Up(X() + 1) && Close(X()) >= Envelopes_Mid(X()) && Close(X()) <= Envelopes_Up(X())

## Recorded exit rules

- Not specified.

## Recorded filters

- Not specified.

## Risk controls

- Stop loss: not specified
- Take profit: not specified
- Position sizing: not specified