DEFINITION of 'Moving Average Ribbon'
A technique used in technical analysis to identify changing trends. It is created by placing a large number of moving averages onto the same chart. When all the averages are moving in the same direction, the trend is said to be strong. Reversals are confirmed when the averages crossover and head in the opposite direction.
The moving averages used in the diagram start with the 50day moving average and increase by 10day periods up to the final average of 200. (50, 60, 70, 80 ... 190, 200)
BREAKING DOWN 'Moving Average Ribbon'
Responsiveness to changing conditions is accounted for by changing the number of time periods used in the moving averages. The shorter the number of periods used to create the average, the more sensitive the ribbon is to slight price changes. For example, a series of 5, 15, 25, 35 and 45day moving averages will be a better choice to find shortterm reversals then 150, 160, 170, 180day moving averages.

Simple Moving Average  SMA
A simple, or arithmetic, moving average that is calculated by ... 
Death Cross
A crossover resulting from a security's longterm moving average ... 
Guppy Multiple Moving Average  ...
An indicator used in technical analysis to identify changing ... 
Exponential Moving Average  EMA
A type of moving average that is similar to a simple moving average, ... 
Crossover
The point on a stock chart when a security and an indicator intersect. ... 
Displaced Moving Average
A moving average that has been adjusted forward or back in time ...

Active Trading
Moving Averages: Strategies
By Casey Murphy, Senior Analyst ChartAdvisor.com Different investors use moving averages for different reasons. Some use them as their primary analytical tool, while others simply use them as ... 
Trading Strategies
Technical Analysis: Moving Averages
By Cory Janssen, Chad Langager and Casey MurphyMost chart patterns show a lot of variation in price movement. This can make it difficult for traders to get an idea of a security's overall trend. ... 
Active Trading Fundamentals
Simple Moving Averages Make Trends Stand Out
The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trendspotting tool. 
Active Trading
Moving Averages: How To Use Them
By Casey Murphy, Senior Analyst ChartAdvisor.com Some of the primary functions of a moving average are to identify trends and reversals, measure the strength of an asset's momentum and determine ... 
Technical Indicators
Reading Trends With Moving Average Ribbons
Moving average ribbons reveal subtle relationships between price, time and trend. 
Active Trading
Moving Averages: Factors To Consider
By Casey Murphy, Senior Analyst ChartAdvisor.com Data Used in Calculation Most moving averages take the closing prices of a given asset and factor them into the calculation. We thought it would ... 
Technical Indicators
Use Moving Averages to Buy Stocks
A moving average constantly updates a stock's average price, but it cannot predict a stock's performance. 
Active Trading
The 7 Pitfalls Of Moving Averages
While moving averages can be a valuable tool, they are not without risk. Discover the pitalls and how to avoid them. 
Term
What's a Death Cross?
A death cross is seen when the shortterm moving average of a security or index falls below its longterm moving average. 
Technical Indicators
Adjusting Strategies to Moving Average Slopes
Managing interrelationships between price, moving averages and slope can shift the reward: risk equation in your favor.

What is a common strategy traders implement when using a Moving Average Ribbon?
Learn about how traders might use an exponential moving average ribbon strategy and what kinds of buy and sell signals are ... Read Answer >> 
What are the main advantages of using Moving Averages (MA)?
See why moving averages have proven to be advantageous for traders and analysts and useful when applied to price charts and ... Read Answer >> 
How are moving averages used in trading?
Moving averages are very popular tools used by technical traders to measure momentum. The main purpose of these averages ... Read Answer >> 
Are exponential moving averages more effective than simple or weighted moving averages?
Learn about different types of moving averages, as well as moving average crossovers, and understand how they are used in ... Read Answer >> 
What is the difference between a simple moving average and an exponential moving ...
The only difference between these two types of moving average is the sensitivity each one shows to changes in the data used ... Read Answer >> 
What is the difference between a Golden Cross and a Death Cross Pattern?
Learn the difference between the golden cross and the death cross, both of which are considered important technical indicators ... Read Answer >>