Madrid MA Ribbon Bar v2

The Madrid MA Ribbon Bar v2 indicator provides a visual heat-map representation of trend strength and momentum by stacking multiple moving averages into a consolidated bar format.

Usage

The Usage section describes how the script can be used to identify market conditions through color-coded bar segments. Traders use this tool to determine the prevailing trend direction and the maturity of a move based on the alignment of short-term and long-term moving averages.

• Trend Identification: When the bars are primarily green, it indicates a bullish environment where shorter-term averages are above the longer-term baseline (100 MA). When the bars are primarily red, it indicates a bearish environment.
• Momentum Strength: Darker colors represent "Strong" trends where the specific moving average is trending in the direction of the overall bias. Lighter colors represent "Weak" momentum or potential retracements within a trend.
• Trend Reversals: A transition from solid red to solid green across all stacked segments suggests a complete trend flip. Traders often look for the "fanning out" of colors to confirm entry points.

Details

The Madrid MA Ribbon Bar v2 is a specialized version of the traditional Moving Average Ribbon. Unlike standard ribbons that overlay lines on the price chart, this version utilizes a separate pane with stacked columns to maintain visual clarity regardless of chart scaling.

The indicator calculates 20 different moving averages, ranging from a period of 5 to 100 in increments of 5. The logic evaluates each moving average against two reference points: the "Slow" baseline (100 MA) and the "Fast" lead (5 MA). The color of each segment is determined by:

1. Direction: Whether the specific MA is currently rising or falling.
2. Position: Whether the lead MA is above or below the baseline MA.

This version has been refactored for Pine Script v5/v6 compatibility and includes optimized alert logic for trend crossovers.

Settings

• Exponential MA: Toggles between using Exponential Moving Averages (EMA) or Simple Moving Averages (SMA) for all 20 calculations.

FAQ

How do I interpret the different colors in the bar?

Green segments indicate a bullish bias (Fast MA > Slow MA), while red segments indicate a bearish bias (Fast MA < Slow MA). Dark shades indicate the MA is moving in the trend direction, while lighter shades indicate a counter-trend slope.

Can I change the periods of the moving averages?

The script uses a fixed set of 20 moving averages from 5 to 100 to create the "Ribbon" effect. These are hardcoded to ensure the visual stack remains consistent, though the calculation method (EMA/SMA) can be toggled.

How do I access this indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.