Graphics or examples of what it looks like in action - Buy or Sell Ribbon
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Last updated
Last updated
Below we present a series of graphs and scenarios to illustrate how this indicator works in different contexts:
Description: In a market with an uptrend, we will see that most of the moving averages are pointing upwards, and the colors of the ribbon become brighter shades of green.
Description: In contrast to the uptrend scenario, in a downtrending market, the moving averages will point downwards. Here, the ribbon will show red tones, with darker red indicating a stronger downtrend.
Description: In a sideways market, moving averages tend to overlap and move within a narrow range. The ribbon in this situation could display neutral colors, such as grays or a mix of soft reds and greens.
Description: This is where the "Buy or Sell Ribbon" can be especially useful. In a trend reversal, shorter moving averages will begin to cross over longer ones. For example, in an uptrend reversal, a shorter moving average will cross above a longer one, and the ribbon will start to change from red to green.
