Skip to main content

Madrid Moving Average Ribbon: 19 Moving Averages That Show Trends Instantly

· 3 min read
Pineify Team
Pineify Team

The Madrid Moving Average Ribbon is like having 19 different moving averages on your chart at once, from fast (5 periods) to slow (100 periods). When they bunch together and change colors, it gives you a clear picture of what the market's doing.

Instead of just one line, you get this colorful ribbon that shows:

  • Green when things are going up
  • Red when they're going down
  • Mixed colors when the market can't decide

The 100-period average acts like a baseline - if prices are above it and the ribbon's green, that's generally good. Below and red? Not so good.

Madrid Moving Average Ribbon Indicator - TradingView Chart

What's this ribbon thing?​

It's basically 19 moving averages (you can use EMA, SMA, etc.) plotted together. The colors help you see at a glance:

  • All green? Probably an uptrend
  • All red? Likely a downtrend
  • Mixed colors? The market's confused

The way the lines stack tells you how strong the trend is - neat and orderly means strong, messy and crossing means weak.

The Best Pine Script Generator

About Pineify​

Pineify is like a visual builder for TradingView indicators. Instead of writing code, you drag and drop pieces to create what you need. It's great if:

  • You're not a coder but want custom indicators
  • You want to test ideas quickly
  • You like seeing changes as you make them
Pineify Website

Adding the ribbon to your chart​

Here's the easy way to get this on your TradingView chart:

  1. Open Pineify and find the Madrid Ribbon
  2. Tweak the settings if you want (like which type of moving average to use)
  3. Get the code and paste it into TradingView
  4. That's it - you'll see the ribbon on your chart
How to search for and add indicator pages in the Pineify editor

How to actually use it​

The ribbon gives you clues about:

  • Trend direction: Green up, red down
  • Trend strength: Tight ribbon = strong, messy = weak
  • Potential turns: When colors start flipping

Some ways traders use it:

  • Going long when price bounces off green ribbon
  • Shorting when price gets rejected at red ribbon
  • Watching for color changes as early warnings

The ribbon can act like support/resistance too - price often reacts when it hits the ribbon in a clear trend.

Testing it out​

Before using real money, you'll want to see how this works in different markets. With Pineify you can:

  • Set rules for when to enter/exit
  • Add stop losses
  • See how it would've performed historically

This helps you understand when the ribbon works best and when it might give false signals.

Final thoughts​

The Madrid Ribbon is one of those tools that's simple but surprisingly useful. The colors make trends obvious, and having all those moving averages together gives you more information than just one or two.

Whether you're just starting out or have been trading awhile, it's worth playing with to see if it fits how you trade. The best part is you can adjust it to match your style - faster or slower averages, different types, etc.