Moving Average Exponential Ribbon

The Moving Average Exponential Ribbon technical indicator is simply numerous exponential moving averages of increasing time period plotted on the same graph.

The number of exponential moving averages (EMA) to plot varies immensely among users of this indicator; also, some users plot the simple moving average instead of the EMA. Likewise, the lengths of the moving averages varies wildly as well. One must factor the time horizon and investing objectives when selecting the lengths for the moving averages.

In the chart below of the E-mini S&P 500 Futures contract, eight EMA's were selected, starting with the 10-day EMA and ending with the 80-day EMA:

The buy signal for the Exponential Moving Average Ribbons is exactly the same signal as any other moving average crossover; however, the difference is that there are numerous crossovers. Decisions must be made as to how many crossovers must occur before a buy signal is officially triggered.

A close-up of the numerous buy signal crossovers is presented below:

The sell signal for the Exponential Moving Average Ribbons occurs when the moving averages begin to crossover; however, determining how many crossovers must occur before a sell signal is officially triggered is up to the stock, futures, or currency pair trader.

Overall, strong buy or sell signals are generated from the Exponential Moving Average Ribbons indicator when all of the moving averages have crossed over one another.