Madrid Moving Average RibbonThis plots a moving average ribbon, either exponential or standard. It provides an easy and fast way to determine the trend direction and possible reversals.
Lime : Uptrend. Long trading
Maroon : Reentry (buy the dip) or downtrend reversal warning
Red : Downtrend. Short trading
Green : Short Reentry (sell the peak) or uptrend reversal warning
To best determine if this is a reentry point or a trend reversal the MMARB (Madrid Moving Average Ribbon Bar) study is used. This is the bar located at the bottom. This bar signals when a current trend reentry is found (partially filled with opposite dark color) or when a trend reversal is ahead (completely filled with opposite dark color).
This study requires no parameters, and it can be used on any time frame.
I hope this effort can help you in your trading.
Ribbon
Madrid Profit AreaThis study displays a ribbon made of two moving averages identified by a filled Area. This provides visual aids to determine the trend direction and pivot points. The moving average will be Red if its value is decreasing, and green if it is increasing. When both MA's are the same color we have a trend direction. If those are different then we have a trend reversal and a pivot point.
If combined with another ribbon then it can be configured so we have a pair of slow MA's and another pair of fast MA's , this can visually determine if the price is in bull or bear territory following the basic rules:
1. Fast MA pair above the slow MA Pair = Bullish
2. Fast MA pair below the slow MA Pair = Bearish
3. If the fast MA crosses over the slow MA it is a Bullish reversal
4. If the fast MA crosses below the the slow MA, it is a Bearish reversal.
The use of the ribbons without the price bars or line reduces the noise inherent to the price
