MovAvgExpRibbon

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.

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