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 =
2. Fast MA pair below the slow MA Pair =
3. If the fast MA crosses over the slow MA it is a reversal
4. If the fast MA crosses below the the slow MA, it is a reversal.
The use of the ribbons without the price bars or line reduces the noise inherent to the price
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
// // Madrid : 01/APR/2014 : Moving Profit Area : 2.0 PRO // http://madridjourneyonws.blogspot.com/ // // This plots two moving averages, either exponential or standard // When it is declining it shows the MA in red, green when rising. // This is a visual aid to make sure you're on the right side of the trade // study(title="Madrid Profit Area", shorttitle="MPA", overlay=true) src = close fastLen = input(8, minval=1, title="Fast MA Length") slowLen = input(21, minval=1, title="Slow MA Length") exponential = input(true) fastMA = exponential ? ema(src, fastLen) : sma(src, fastLen) slowMA = exponential ? ema(src, slowLen) : sma(src, slowLen) colorFMA = change(fastMA)>0 ? green : red colorSMA = change(slowMA)>0 ? green : red p1=plot(fastMA, color=colorFMA, linewidth=3) p2=plot(slowMA, color=colorSMA, linewidth=3) fill(p1, p2, color=blue, transp=75)