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Saturday, October 1, 2011

Moving Average Ribbon

If the performance of three lines of the MA is better than one line, how much more when combined, for example ten lines at once?
 
Indeed in the study of technical indicators such methods are also known but less popular, which is called by the name of the Moving Average Ribbon / Rainbow. Some adherents of these methods generally use MA (50) dean enhanced per-10 to 150-day. When all the lines moving in the same direction with the direction of the trend it is expressed very strong trend.
 
Despite this delay in terms of validation of a signal is considered too slow, especially for the anticipated short term trading, so the method is only used part-time traders who have long term horizon.
 


Read also : Moving Average Envelopes

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