Tuesday, June 06, 2017 12:47:38 PM
Using an EMA Ribbon to Define the Trend BY ART HILL
There are numerous ways to determine the trend with the humble moving average providing the simplest means. The length of the moving average depends on the trend you wish to capture. The chart below shows Mastercard (MA) with four EMAs that become progressively longer (20, 40, 80 and 160 days). This moving average ribbon provides a great example of a strong uptrend from August 2016 until now. Notice that the shorter EMA has been above the next longer EMA since August (20-day above 40-day, 40-day above 80-day etc...).
There are numerous ways to determine the trend with the humble moving average providing the simplest means. The length of the moving average depends on the trend you wish to capture. The chart below shows Mastercard (MA) with four EMAs that become progressively longer (20, 40, 80 and 160 days). This moving average ribbon provides a great example of a strong uptrend from August 2016 until now. Notice that the shorter EMA has been above the next longer EMA since August (20-day above 40-day, 40-day above 80-day etc...).
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