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  • Table of Contents
    • Overview
      • Why Analyze Securities?
      • Technical Analysis
      • Fundamental Analysis
      • Random Walk vs. Non-Random Walk
      • Asset Allocation and Diversification
      • John Murphy's 10 Laws of Technical Trading
      • John Murphy's "Charting Made Easy" eBook
      • Technical Analysis 101
        • TA 101 – Part 1
        • TA 101 – Part 2
        • TA 101 – Part 3
        • TA 101 – Part 4
        • TA 101 – Part 5
        • TA 101 – Part 6
        • TA 101 – Part 7
        • TA 101 – Part 8
        • TA 101 – Part 9
        • TA 101 – Part 10
        • TA 101 – Part 11
        • TA 101 – Part 12
        • TA 101 – Part 13
        • TA 101 – Part 14
        • TA 101 – Part 15
        • TA 101 – Part 16
        • TA 101 – Part 17
      • Irrational Exuberance
      • Cognitive Biases
      • Arthur Hill on Goals, Style and Strategy
      • Arthur Hill on Moving Average Crossovers
      • Multicollinearity
      • "The Trader's Journal" by Gatis Roze
        • Stage 1: Money Management
        • Stage 2: Business of Investing
        • Stage 3: The Investor Self
        • Stage 4: Market Analysis
        • Stage 5: Routines
        • Stage 6: Stalking Your Trade
        • Stage 7: Buying
        • Stage 8: Monitoring Your Investments
        • Stage 9: Selling
        • Stage 10: Re-Examine, Refine, Re-Enhance
        • Additional Reading
      • Bob Farrell's 10 Rules
      • Richard Rhodes' Trading Rules
      • Donchian Trading Guidelines
      • Why and How To Use Correlation
    • Chart Analysis
      • What Are Charts?
      • Support & Resistance
      • Trend Lines
      • Gaps and Gap Analysis
      • Introduction to Chart Patterns
      • Chart Patterns
        • Broadening Top or Megaphone Top
        • Double Top Reversal
        • Double Bottom Reversal
        • Head and Shoulders Top
        • Head and Shoulders Bottom
        • Falling Wedge
        • Rising Wedge
        • Rounding Bottom
        • Triple Top Reversal
        • Triple Bottom Reversal
        • Bump and Run Reversal
        • Flag, Pennant
        • Symmetrical Triangle
        • Ascending Triangle
        • Descending Triangle
        • Rectangle
        • Price Channel
        • Measured Move—Bullish
        • Measured Move—Bearish
        • Cup With Handle
      • Chart Types
        • Arms CandleVolume
        • CandleVolume
        • Elder Impulse System
        • EquiVolume
        • Heikin-Ashi Candlesticks
        • Kagi Charts
        • Renko Charts
        • Three Line Break Charts
        • MarketCarpets
        • Relative Rotation Graphs (RRG Charts)
        • Seasonality Charts
        • Yield Curve
      • Candlestick Charts
        • Introduction to Candlesticks
        • Candlesticks and Traditional Chart Analysis
        • Candlesticks and Support
        • Candlesticks and Resistance
        • Candlestick Bullish Reversal Patterns
        • Candlestick Bearish Reversal Patterns
        • Candlestick Pattern Dictionary
      • Point and Figure Charts
        • Point and Figure Basics
          • Introduction to Point & Figure Charts
          • Point & Figure Scaling and Timeframes
          • P&F Trend Lines
        • Classic Patterns
          • P&F Bullish Breakouts
          • P&F Bearish Breakdowns
          • P&F Signal Reversed
          • P&F Catapults
          • P&F Triangles
          • P&F Bull & Bear Traps
        • P&F Price Objectives
          • P&F Price Objectives: Breakout and Reversal Method
          • P&F Price Objectives: Horizontal Counts
          • P&F Price Objectives: Vertical Counts
        • Point & Figure Indicators
        • P&F Scans and Alerts
          • P&F Pattern Alerts
      • Chart Annotation Tools
        • Andrews' Pitchfork
        • Stock Market Cycles
        • Fibonacci Retracements
        • Fibonacci Arcs
        • Fibonacci Fans
        • Fibonacci Time Zones
        • Quadrant Lines
        • Raff Regression Channel
        • Speed Resistance Lines
    • Technical Indicators & Overlays
      • Introduction to Technical Indicators and Oscillators
      • Technical Indicators
        • Accumulation/Distribution Line
        • Alligator Indicator
        • Aroon
        • Aroon Oscillator
        • ATR Bands
        • ATR Trailing Stops
        • Average Directional Index (ADX)
        • Average True Range (ATR) and Average True Range Percent (ATRP)
        • Balance of Power (BOP)
        • Bollinger BandWidth
        • %B Indicator
        • Chaikin Money Flow (CMF)
        • Chaikin Oscillator
        • Chande Trend Meter (CTM)
        • CMB Composite Index
        • Commodity Channel Index (CCI)
        • ConnorsRSI
        • Coppock Curve
        • Correlation Coefficient
        • DecisionPoint Price Momentum Oscillator (PMO)
        • Detrended Price Oscillator (DPO)
        • Distance From Highs
        • Distance From Lows
        • Distance To Highs
        • Distance To Lows
        • Distance From Moving Average
        • Ease of Movement (EMV)
        • Force Index
        • Gopalakrishnan Range Index
        • High Low Bands
        • High Minus Low
        • Highest High Value
        • Linear Regression R2
        • Lowest Low Value
        • Mass Index
        • MACD (Moving Average Convergence/Divergence) Oscillator
        • MACD-Histogram
        • MACD-V
        • MACD-V Histogram
        • Median Price
        • Money Flow Index (MFI)
        • Negative Volume Index (NVI)
        • On Balance Volume (OBV)
        • Percentage Price Oscillator (PPO)
        • Percentage Volume Oscillator (PVO)
        • Performance Spread
        • Price Relative/Relative Strength
        • Pring's Know Sure Thing (KST)
        • Pring's Special K
        • Rate of Change (ROC)
        • Relative Strength Index (RSI)
        • Relative Volume (RVOL)
        • RRG Relative Strength
        • StockCharts Technical Rank
        • Slope
        • Standard Deviation (Volatility)
        • Stochastic Oscillator (Fast, Slow, and Full)
        • StochRSI
        • Traffic Light
        • TRIX
        • True Range
        • True Strength Index
        • TTM Squeeze
        • Typical Price
        • Ulcer Index
        • Ultimate Oscillator
        • Vortex Indicator
        • Weighted Close
        • Williams %R
      • Technical Overlays
        • Anchored VWAP
        • Bollinger Bands
        • Chandelier Exit
        • Double Exponential Moving Average (DEMA)
        • Hull Moving Average (HMA)
        • Ichimoku Cloud
        • Kaufman's Adaptive Moving Average (KAMA)
        • Keltner Channels
        • Linear Regression Forecast
        • Linear Regression Intercept
        • Moving Averages—Simple and Exponential
        • Moving Average Ribbon
        • Moving Average Envelopes
        • Parabolic SAR
        • Pivot Points
        • Price Channels
        • Triple Exponential Moving Average (TEMA)
        • Volume-by-Price
        • Volume-Weighted Average Price (VWAP)
        • ZigZag
    • Market Indicators
      • Introduction to Market Indicators
        • Market Indicator Dictionary
      • Advance-Decline Line
      • Advance-Decline Percent
      • Advance-Decline Volume Line
      • Advance-Decline Volume Percent
      • Arms Index (TRIN)
      • Bullish Percent Index (BPI)
      • DecisionPoint Intermediate-Term Breadth Momentum Oscillator (ITBM)
      • DecisionPoint Intermediate-Term Volume Momentum Oscillator (ITVM)
      • DecisionPoint Swenlin Trading Oscillator (STO)
      • High-Low Index
      • High-Low Percent
      • McClellan Oscillator
      • McClellan Summation Index
      • Net New 52-Week Highs
      • Percent Above Moving Average
      • Pring's Bottom Fisher
      • Pring's Diffusion Indicators
      • Pring's Inflation and Deflation Indexes
      • Pring's Net New High Indicators
      • Put/Call Ratio
      • Record High Percent
      • Volatility Indices
    • Market Analysis
      • Dow Theory
      • Sector Rotation Analysis
      • Intermarket Analysis
      • The DecisionPoint Chart Gallery
      • DecisionPoint Rydex Asset Analysis
      • Wyckoff Analysis Articles
        • Wyckoff Market Analysis
        • Wyckoff Stock Analysis
        • The Wyckoff Method: A Tutorial
      • Elliott Wave Analysis Articles
        • Introduction to Elliott Wave Theory
        • Identifying Elliott Wave Patterns
        • Guidelines for Applying Elliott Wave Theory
    • Trading Strategies & Models
      • DecisionPoint Trend Model
      • Trading Strategies
        • Bollinger Band Squeeze
        • CCI Correction
        • CVR3 VIX Market Timing
        • Faber's Sector Rotation Trading Strategy
        • Gap Trading Strategies
        • Harmonic Patterns
        • Hindenburg Omen
        • Ichimoku Cloud Trading Strategies
        • The 'Last' Stochastic Technique
        • MACD Zero-Line Crosses With Swing Points
        • Moving Average Trading Strategies
          • Finding Support and Resistance in Moving Averages
          • Guppy Multiple Moving Average: An MA Ribbon Designed to Tip the Market’s Hand
          • How To Trade Price-to-Moving Average Crossovers
          • Trading the Bounce: Finding Support and Resistance in Moving Averages
          • Trading the Death Cross
          • Trading Using the Golden Cross
          • Using the 5-8-13 EMA Crossover for Short-Term Trades
        • Moving Momentum
        • Narrow Range Day NR7
        • Percent Above 50-day SMA
        • Percent B Money Flow
        • The Pre-Holiday Effect
        • RSI(2)
        • Six-Month Cycle MACD
        • Slope Performance Trend
        • Stochastic Pop and Drop
        • Swing Charting
        • Trend Quantification and Asset Allocation
    • Index & Market Indicator Catalog
      • Advance-Decline Indicators
      • Cboe Indices and Indicators
      • CME Futures and Spot Prices
      • DecisionPoint Sentiment Indicators
      • Dow Jones Breadth Indicators
      • Dow Jones Global Indices
      • Dow Jones Select Indices
      • Dow Jones Titans Indices
      • Dow Jones US Indices
      • Economic Indicators
      • ICE Futures and Spot Prices
      • Intellidex Indices
      • MSCI Indices
      • New 52-week Highs and Lows for Exchanges
      • NYSE Arca Equity Indices
      • NYSE Equity Indices
      • Philadelphia Indices
      • S&P 500 Sector and Industry Groups
      • S&P GSCI Indices
      • StockCharts AD Percent
      • StockCharts AD Volume Percent
      • StockCharts Bullish Percent Index
      • StockCharts High-Low Index
      • StockCharts High-Low Percent
      • StockCharts Percent Above Moving Average
      • StockCharts Pseudo Symbols
      • StockCharts Record High Percent
      • StockCharts Theoretical Indices
      • US Treasury Yields
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On this page
  • What Is the Moving Average Ribbon?
  • How Do You Calculate Moving Average Ribbons?
  • How Do You Interpret Moving Average Ribbons?
  • The Bottom Line
  • Charting with Moving Average Ribbons
  • Using with StockChartsACP
  • Using with SharpCharts
  • Moving Average Ribbon FAQs

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  1. Table of Contents
  2. Technical Indicators & Overlays
  3. Technical Overlays

Moving Average Ribbon

A quick way to plot several moving averages with different look-back periods on a chart at once.

PreviousMoving Averages—Simple and ExponentialNextMoving Average Envelopes

Last updated 11 months ago

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What Is the Moving Average Ribbon?

A Moving Average Ribbon is a graphical representation of multiple moving averages with varying look-back periods plotted on the same chart. It appears like a ribbon moving across the chart, hence its name.



These moving averages can be analyzed separately or as a group for trend identification and trend change signals.


How Do You Calculate Moving Average Ribbons?

There are no special formulas here; the Moving Average Ribbon is a quick and easy method to add multiple moving averages to your chart.

Determine the number of moving averages (MAs) to add and the number of periods for each. In StockChartsACP, this is accomplished by specifying the number of periods in the shortest MA, the increment in periods between each MA, and the total number of MAs in the ribbon. You may also specify the type of moving average (simple or exponential). For example, you may want 8 EMAs on your daily chart in 10-period increments, with the shortest being a 10-day EMA and the longest being an 80-day EMA.

Each moving average in the ribbon is calculated using the standard SMA or EMA formulas. For more details on those calculations, please see our Moving Averages article in ChartSchool.


How Do You Interpret Moving Average Ribbons?

Since the Moving Average Ribbon is just a collection of moving averages, the interpretation is similar to that used with one or two moving averages. With single moving averages, you can look at the direction of the moving average and whether it is above or below the price bars. With two moving averages, you can look for crossovers of the short-term MA over the long-term MA and vice versa. The ribbon allows you to look at these relationships for multiple moving averages at once:

  • If all the averages move in the same direction, this indicates a strong trend. The longer- and shorter-term lines are all in agreement about the direction of the trend. If all the moving average lines in the ribbon move upward, prices increase in all timeframes, and the security is likely in an uptrend.

  • If the shorter-term lines cross above the longer-term lines, this signals a new uptrend; a downtrend is indicated when shorter-term moving average lines cross below the longer-term ones. Chartists can also look for price bars to cross above or below the various moving average lines in the ribbon.

The ribbon's width—the distance between the moving average lines in the ribbon—can also provide information for traders:

  • When all moving average lines are running in parallel (the lines are evenly spaced over time), this indicates a strong trend.

  • If the ribbon is expanding (the moving average lines are getting farther apart over time), this could mark the end of the current trend.

  • If the ribbon is contracting (the moving average lines are getting closer together or even crossing), this can indicate the start of a new trend.

The responsiveness of the ribbon can be adjusted by changing the type of moving average (EMAs respond more quickly than equivalent SMAs), and by changing the number of periods in the moving averages (MAs with fewer periods will react more quickly than those with more periods).


The Bottom Line

A moving average ribbon allows you to see at a glance what's happening in both the long- and short-term by looking for trends and crossovers across various look-back periods. In addition, ribbon width expansions and contractions can indicate trend strength and possible trend changes. As with all technical indicators, traders should use the Moving Average Ribbon overlay with other indicators and analysis techniques.


Charting with Moving Average Ribbons

Moving Average Ribbons can be created on both SharpCharts and StockChartsACP charts.

Using with StockChartsACP

Chartists can build their own ribbon by adding several moving averages to their chart one at a time, but there is a quicker way in StockChartsACP: the Moving Average Ribbon overlay.

This overlay can be added from the Chart Settings panel for your StockChartsACP chart. Moving Average Ribbons can be overlaid on the security's price plot or on an indicator panel.



By default, the overlay uses 10 SMAs, spaced 5 periods apart, ranging between 20 and 65 periods. The type of moving average (Simple or Exponential), the number of periods in the shortest moving average, the increment (Step) of periods between each line, and the number of moving averages can all be adjusted to meet your technical analysis needs.

The line colors default to rainbow order with the shortest moving average set to red, the second shortest set to orange, and so on, but these line colors can also be adjusted.

Using with SharpCharts

While the SharpCharts Workbench does not offer a built-in Moving Average Ribbon indicator, it is relatively easy to create your own ribbon on SharpCharts by adding multiple moving averages, each with a different number of periods and different color.

The example below shows the same ribbon as in the StockChartsACP example above. Click the link below the chart to see how this ribbon was configured in SharpCharts.




Moving Average Ribbon FAQs

What are the most common settings for a Moving Average Ribbon?

A common setting for a Moving Average Ribbon is to use 6 to 8 moving averages of different lengths, such as 10, 20, 30, 40, 50, and 60 periods. However, the best settings for a Moving Average Ribbon will vary depending on the market being analyzed and the trader's personal preferences.

What moving averages can I use in a Moving Average Ribbon?

You can use Simple Moving Averages (SMAs) or Exponential Moving Averages (EMAs) in a Moving Average Ribbon, depending on your preference and the specific analysis you are conducting.

How can the Moving Average Ribbon assist in signaling a new uptrend or downtrend?

A new uptrend is signaled when shorter-term moving average lines cross above the longer-term ones. On the contrary, a downtrend is indicated when shorter-term moving average lines cross below the longer-term ones.

How can I adjust the responsiveness of the Moving Average Ribbon?

The responsiveness of the Moving Average Ribbon can be adjusted by changing the type of moving average and the number of periods in the moving averages. Exponential Moving Averages (EMAs) respond more quickly than Simple Moving Averages (SMAs), and moving averages with fewer periods will react more quickly than those with more periods.

Learn More.

Learn More.

Learn More. For more details on the parameters used to configure moving average overlays, please see our in the Support Center.

Moving Averages
Trade With Moving Average Ribbons
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SharpCharts Parameter Reference
Example of Moving Average Ribbon overlaid on a price chart.
The Moving Average Ribbon overlay applied to a chart using StockChartsACP.
Example of the Moving Average Ribbon overlay applied to SharpCharts.
Chart from StockChartsACP displaying moving average ribbon overlaid on a price chart
Chart from StockChartsACP displaying the moving average ribbon overlaid on a price chart of SPY
Chart from StockCharts.com displaying the moving average ribbon overlay