What is moving average ribbon

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Moving average ribbon calculation

Moving average ribbon ki calculation kay liay hmain moving average ki tadad ka pata hona chaiay us kay baad unki length aur look back periods sepect kartay hain, us kay baad har aik ka simple moving average calculate kartay hain,



Uptrend and downtrend
pairs ki prices moving average ribbon sa above hoti hain aur moving average ka angle upward hota hay to ye rising prices ki indication hoti hay aur uptrend ki confirmation hoti hay, isi tarah jab prices moving average ribbon ka below hoti hain aur moving average ka angle downward hota hay to ye prices kay fall karnay ki indication hoti hay aur downtrend ki information milti hay, jab ribbons expand huay hotay hain to ye trend ko strength ko show kartay hain aur jab ye contract hotay hain to prices kay consolidation phase main honay ya pulll back phase ko indicate kartay hain



Formula



Calculate moving average ribbon
1:Sab sa phalay ya janna zarori ha ka kitne moving average use ho rahe ha.

2:

Is moving average ke lenth yani is ke jo bhi lambai ay ge is ko divide kar dana ha jo phalay market chal rahe the os sa.

3:

Calculate karne ha simple moving average yani jo simple moving average ho ge is ko calculate kar lana ha.

Re: What is moving average ribbon

INTRODUCTION :




Hello friends kasa ho ap sab umeed ha ap sab thek ho ga or ap ke trading achi horahe ho ge or ap log trading karka acha profit bhi hasil kar raha ho ga or mara kuch dost abhi abhi trading start kar raha ho ga jin ko trading ka bara ma abhi kuch bhi ni pata ho ga par aj ma apna inin dosto ka sath forex trading ka kuch point share karo ga jin ko samjna ap sab ka liyaliya zarori ha q ka ya market or trading ma ak kas ahmet rakhta ha. Jo aj ka hamara topic ha os ka name moving average ribbon ha. Agar ap na aj ka topic sai sa samaj liya toto mujha yaken ha ka ap ko trading ma kuch na kuch profit zaror ho ga to isis liya aj ka topic mara sab dosto ka liya kas hona walawala ha jo dost new ha trading ma or jo mara dost kafi time sa kar raha ha trading.





WHAT IS A MOVING AVERAGE RIBBONS :





Dosto jo ya moving average ribbon ak type hote ha moving average ke. Bahot se different line ko market ka chart ma bana kar hum is moving average ribbon indecator ko banat ha. Ya jo moving average hota ha is ko traders asa janta ha ka is ma jo different hota ha moving average ma osa moving average ribbon kahta ha. Ya ribbon market ma support or resistance ka time par show hote ha is ribbon ke price support or resistance par hote ha. Ribbon ko is liya bhi use karta ha ka ya market ma trade lagana ka ak signal data ha.





FORMULA FOR A MOVING AVERAGE RIBBONS :



Moving Average Ribbon=Multiple SMAs

where:


SMAs=Simple moving averages


SMA= nPrice 1 +Price 2+Price 3+⋯Price n/n
n=Number of periods





HOW TO CALCULATE A MOVING AVERAGE RIBBONS :



Is ribbon moving average ko three step ma calculate kiya ja sakta ha.

1:

First ma ap determin kara ka kitne moving average use hao ha.

2:

Is ka second step ma is ke length ko find karna ha.

3:

Thired step ma simply moving average ko find karna ha.





MOVING AVERAGE RIBBONS EXAMPLE :





Ya jo chart mana ap ka sath share kiya ha ya is pattern ke example ha is ko ap asa samaj sakta ha ka is ma ap ko bullish or breash ko find karna hota ha jab indecator low or high ko cross karta ha tab jo ya colour hota ha wo change hojata ha green sa red or red sa green ho jata ha. Is ma asa hota ha ka line ke strength increase ho jate ha ya huma batat ha ka market apna trend change kar rahe ha.

Re: What is moving average ribbon

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MOVING AVERAGES RIBBON: HOW TO FIND ENTRY POINT
WHAT IS MA RIBBON?
Moving average ribbons are a series of moving averages (MA) of different lengths that are plotted on the same chart to create a ribbon-like indicator. Traders can determine the strength of a trend by looking at the distance between the moving averages. The ribbons can also be used to signal potential trend changes when the price moves through lines, or lines cross each other.

You can download this indicator for MT5 using the link!

HOW TO SET UP A MOVING AVERAGE RIBBON?
It is all about traders’ preferences. Some traders like to use six to eight simple moving averages (SMA) set at 10-period intervals, such as the 10, 20, 30, 40, 50, and 60-day SMAs. Others prefer to use only two lines and open trades when the lines cross each other.

Traders can also choose between types of moving averages. Some of them prefer simple and others use exponential lines. The EMA reacts quicker to price changes and the SMA reacts slower. That is the main difference between the two. One is not necessarily better than another. Sometimes the EMA will react quickly, causing a trader to get out of a trade on a market hiccup, while the slower-moving SMA keeps the person in the trade, resulting in a bigger profit after the hiccup is finished. At other times, the opposite could happen. The faster-moving EMA signals trouble quicker than the SMA, and so the EMA trader gets out of harm's way quicker, saving that person time and money.

Each trader must decide which MA is better for his or her particular strategy. Many shorter-term traders use EMAs because they want to be alerted as soon as the price is moving the other way. Longer-term traders tend to rely on SMAs since these investors aren't rushing to act and prefer to be less actively engaged in their trades.

Also, traders can choose the MA period. The lower meaning of period makes MA reflect more precisely on price changes.

HOW TO TRADE WITH MA RIBBON?
This article will describe the simplest example of MA ribbon, but it is not less effective. On the contrary, it will protect traders from the market’s hiccups.

In this strategy, only 2 moving average lines are used. One is the “fast MA” line and the other is “Slow MA”.

We have chosen settings that are designed for daily and long-term traders.

The settings are:

Fast time frame: current

Fast MA period: 12

Fast MA method: Simple moving average

Fast MA price: Close

Slow time frame: current

Slow MA period: 85

Slow MA method: Exponential moving average

Slow MA price: Weighted

As a result, we get 2 lines. If the fast line crosses the slow one from the bottom, an uptrend will begin. On the contrary, the downtrend starts if the fast line crosses the slow one from the top.

Let’s look at the example!

1H BTC Chart

BTCUSDH1.png

Using the MA ribbon strategy trader could open the deal after the fast line crossed the slow one ($30700 level on the chart). It is important to set a stop-loss. If it is a long trade, traders set stop-loss below an entry point. If it is a short one, traders set stop-loss above an entry point. In our case, stop-loss must be set right below $40700. The position closes when lines cross each other again ($40650 level on the chart) or if the price reaches the trader’s target.

Let’s look at one more example!

4H EUR/USD chart

EURUSDH4.png

On the EUR/USD chart the place of hiccup appearance is highlighted. It is a great example of stop-loses importance as during flat market movement lines might cross each other several times in both directions.

CONCLUSIONS
Traders can set this instrument according to their strategy and a time frame they prefer to use. For daily traders, it is better to use EMAs and set lower meanings period meanings.
It is highly important to use stop-loses.
Traders must set targets before they open a trade or take profit after the lines cross each other the opposite way.

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2021-12-01 • Updated

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