EMA Ribbon Slope Expansion with RSI and Volume Filters

Summary

The visible Pine Script excerpt defines a trend-following strategy based on the slopes of five exponential moving averages, with lengths ranging from short to longer-term. Each slope measures percentage change over a configurable lookback. A bullish ribbon requires all slopes to be positive and ordered from steepest on the fastest EMA to least steep on the slowest; the bearish condition mirrors this ordering with negative slopes. The difference between the fastest and slowest slopes forms a fan score, used with an expansion threshold to identify a sufficiently open ribbon.

RSI and volume provide additional confirmation: long signals require RSI within a bullish range, short signals use mirrored bounds, and volume must exceed a multiple of its moving average. The excerpt ends partway through the entry and exit section, so the complete trade management rules are unavailable. It lists risk-per-trade, ATR stop, and reward-multiple inputs, but their implementation is not visible. No results or robustness evidence are included, so the indicator logic alone does not demonstrate profitability.

Key ideas

• The system measures percentage slopes across five EMAs to characterize trend direction and acceleration.
• Bullish and bearish setups require the EMA slopes to fan out in the corresponding direction.
• A spread between the fastest and slowest EMA slopes provides an expansion score.
• RSI ranges and above-average volume are used as confirmation filters.
• The excerpt omits complete execution rules and provides no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.