Description
The Exponential Moving Average Ribbon study consists of 8 Exponential Moving Average plots having different lengths thus forming a "ribbon". The lenghts of those averages can be either in arithmetic or geometric progression relation: the increment/multiplier of the progression is defined by a user input.
Parallel long-term Ribbon lines signal a strong trend. Both groups of Ribbon lines converging and fluctuating more than usual is a sign of trend weakness. A change in price direction accompanied by expanding Ribbon lines in both groups is a sign of a trend start. During a short-term reversal, the short-term group crossover, diverge and then again converge, while the long-term group remain parallel.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price used to calculate the EMA Ribbon Study. |
base length
|
The number of bars used to calculate the first EMA. |
increment or multiplier
|
The increment/multiplier of the progression. |
arith or geom1or2
|
Whether to use arithmetic (1) or geometric (2) progression for EMA length. |
Plots
| Plot | Description |
|---|---|
XMA1
|
The 1st moving average. |
XMA2
|
The 2nd moving average. |
XMA3
|
The 3rd moving average. |
XMA4
|
The 4th moving average. |
XMA5
|
The 5th moving average. |
XMA6
|
The 6th moving average. |
XMA7
|
The 7th moving average. |
XMA8
|
The 8th moving average. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.