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.
|The price used to calculate the EMA Ribbon Study.
|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.
|The 1st moving average.
|The 2nd moving average.
|The 3rd moving average.
|The 4th moving average.
|The 5th moving average.
|The 6th moving average.
|The 7th moving average.
|The 8th moving average.
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.