What Is a Moving Average Ribbon

Six averages, one band

A moving average ribbon is several averages of different lengths drawn together and read as one band. The six lines on gold's closes are exponential averages of 10, 20, 30, 40, 50 and 60 days, the shortest in the deepest blue and the longest in grey. While the price runs the band fans open: on 22 April 2025 the six were 255 dollars apart top to bottom, in order from shortest to longest. While the price rests the band folds: on 1 August the six were within 26 dollars and out of order.

A ribbon

The picture is a ribbon. Pulled along, it streams out flat, its stripes side by side a hand's width apart and in order. Let go, it folds on itself, and the stripes bunch and cross. The pull is the trend. A running price drags the ten-day average ahead of the twenty, the twenty ahead of the thirty and so on, so the band opens and its stripes fall into order. A resting price lets the six catch each other up, and the band folds. The width of the ribbon is the reading.

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