Indicator Overview

The Flow Ribbons is a sophisticated trend-identification tool that utilises a seven-layered sequence of Exponential Moving Averages (EMAs) to visualise market momentum and structural shifts. By plotting a spectrum of EMAs ranging from short-term to long-term, the indicator creates a "ribbon" effect that captures the "flow" of capital across multiple time horizons simultaneously.

The ribbons utilise a sunset gradient, where the faster, more reactive EMAs are depicted in bright yellows and oranges, while the slower, foundational EMAs transition into deep reds and maroons. This visual hierarchy allows traders to instantly assess the health of a trend: a wide, fanned-out ribbon indicates strong, accelerating momentum, while a compressed or "twisted" ribbon signals consolidation or a potential regime change.

How To Use

Traders can utilise the Flow Ribbons to determine both trend direction and strength. In a Bullish Regime, the ribbons fan out in sequential order with the yellow EMAs (short-term) positioned above the dark red EMAs (long-term). This expansion suggests that price is being supported by aggressive buying across all lookback periods. Conversely, a Bearish Regime is confirmed when the yellow ribbons cross below the red ribbons, indicating that short-term momentum has broken down.

The "squeeze" or "twist" of the ribbons is a critical early-warning signal. When the gaps between the ribbons narrow, it suggests a loss of momentum and an impending volatile breakout. During strong trends, the ribbons often act as dynamic support or resistance; look for price to pull back and "bounce" off the median orange/red ribbons as a sign of trend continuation. When price pierces through the entire ribbon structure, it typically marks a significant macro shift in market direction.