RedK_Ribbon v1
The Ribbon is a simple concept and is visually attractive to help take away some of the guess work around trend, and help make entry and exit decisions
- it plots the difference in value between the (weighted moving) average closing price against the mid-point price - with an option to take a slightly longer length (factor) for the mid-point average for better visibility - as a Ribbon. The Ribbon will be green if that difference is positive (which means the price is moving in an uptrend), or red if it's moving down. this is combined with a Zero Lag (yellow) line that tracks the closing price for the same ribbon length.
i created this study some time back on a different platform, and in spite of how simple this concept is, it does a great job to visualize the trend and shows levels where the current price can be a good deal (at a discount) when it's below the average while trending up, and when reversals occur - all well visualized - freeing up the brain to make the decisions. there's an optional smoothing but be careful with that - too much smoothing means more lag.
can add a longer moving average of any kind to the chart for an additional filter - in the example, i added a simple 30 day MA (the blue dots).
please feel free to rate and comment.
- it plots the difference in value between the (weighted moving) average closing price against the mid-point price - with an option to take a slightly longer length (factor) for the mid-point average for better visibility - as a Ribbon. The Ribbon will be green if that difference is positive (which means the price is moving in an uptrend), or red if it's moving down. this is combined with a Zero Lag (yellow) line that tracks the closing price for the same ribbon length.
i created this study some time back on a different platform, and in spite of how simple this concept is, it does a great job to visualize the trend and shows levels where the current price can be a good deal (at a discount) when it's below the average while trending up, and when reversals occur - all well visualized - freeing up the brain to make the decisions. there's an optional smoothing but be careful with that - too much smoothing means more lag.
can add a longer moving average of any kind to the chart for an additional filter - in the example, i added a simple 30 day MA (the blue dots).
please feel free to rate and comment.
Release Notes:
updated to default to scale directly to the price