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| MA Ribbons reveal everything you need to know about trend. When the ribbons flip over on a daily chart and the 200-day MA is on top, a bear market has begun. When they cross back and the other MAs line up in order, the bull has returned. Choppy swing conditions exist during phases when averages criss-cross out of sequence. For traders, these can be very pleasant times. Beyond the MARs themselves, watch closely how price penetrates the ribbon. The depth it reaches before emerging often reflects a level that will be repeated over and over again. Tune daily MARs using multiples where each average is approximately 3x the previous one, i.e. 20-60-180. Intraday traders can compress this ratio and utilize 5-bar, 8-bar, 13-bar MAs. |
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