EMA / WMA Ribbon

Momentum Flow Ribbon [EMA / Wilder's MA]
Unlock a clear, visual edge in identifying short-term momentum shifts with the Momentum Flow Ribbon.
This indicator was born from a simple yet powerful concept: to visually represent the dynamic relationship between a fast-reacting Exponential Moving Average (EMA) and the smoother, more methodical Wilder's Moving Average (WMA). While both moving averages use the same length, their unique calculation methods cause them to separate and cross, creating a "ribbon" that provides an immediate and intuitive gauge of market momentum.

This tool is designed for the disciplined trader who values clean charts and actionable signals, helping you to execute your strategies with greater confidence and precision.

How It Works
The script plots an EMA and a Wilder's Moving Average (referred to as rma in Pine Script) of the same length. The space between these two lines is then filled with a colored ribbon:

Bullish Green/Teal: The ribbon turns bullish when the faster EMA crosses above the slower Wilder's MA, indicating that short-term momentum is strengthening to the upside.

Bearish Red: The ribbon turns bearish when the EMA crosses below the Wilder's MA, signaling that short-term momentum is shifting to the downside.

The inherent "lag" of the Wilder's MA, a feature designed by J. Welles Wilder Jr. himself, acts as a steady baseline against which the more sensitive EMA can be measured. The result is a simple, zero-lag visual that filters out insignificant noise and highlights meaningful changes in trend direction.

Key Features
Customizable Length and Source: Easily adjust the moving average length and price source (close, hl2, etc.) to fit your specific trading style and the instrument you are trading, from futures like MES and MNQ to cryptocurrencies and forex.

Customizable Colors: Tailor the ribbon's bullish and bearish colors to match your personal chart aesthetic.

Built-in Alerts: The script includes pre-configured alerts for both bullish (EMA crosses above WMA) and bearish (EMA crosses below WMA) signals. Never miss a potential momentum shift again.

Clean & Lightweight: No clutter. Just a simple, effective ribbon that integrates seamlessly into any trading system.

Practical Application for the Discerning Trader
For a futures trader, timing is everything. This ribbon is not just another indicator; it's a tool for confirmation.

Imagine you've identified a key level—a Volume Profile POC, the previous day's low, or a critical accumulation zone. As price approaches this level pre-London session, you're watching for a sign of institutional activity. A flip in the ribbon's color at that precise moment can provide the powerful confirmation you need to enter a trade, trusting that you are aligning with the building liquidity and momentum heading into the New York open.

This is a tool for those who aspire to greatness in their trading—who understand that the edge is found not in complexity, but in the flawless execution of a simple, well-defined plan.

Add the Momentum Flow Ribbon to your chart and start seeing momentum in a clearer light.