In chart, representing 7 (fast) 14 Normal default and 50 (slow) as a single indicator. With each there is a set of Moving Averages creating a ribbon.
Colors for Ribbon
It uses only four standard colors
- Maroon : Trend is down
- Green : Trend reversal warning
- Lime : Trend is up
- Red: Trend reversal warning
It is important to look for divergences through multiple time frames MTF. When you are working with a shorter time frame and longer time does not agree. Your odds of scoring a positive trades are reduced. Higher chance of making the correct call with two agreeing MTF divergences.
Here is an overview of a 1 day chart for EURUSD using MA Ribbon.
Chart without plotted, only ribbons.
EURUSD weekly chart depicting several Ribbon divergences.
EURUSD weekly chart with Ribbon EMAs selected.