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.

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How do I construct a Moving Ribbon strategy?
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What are the most common periods used in creating Moving Average (MA) lines?
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How do I use a Moving Average Ribbon for creating a forex trading strategy?
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Why is the Moving Average Ribbon strategy important for traders and analysts?
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What is a common strategy traders implement when using a Moving Average Ribbon?
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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 >>