A Ribbon Study consists of 8 or more Simple Moving Average plots having different lengths thus forming a "ribbon". The lengths of those averages are in an arithmetic progression relation: the increment of the progression is defined by the initial and the final Moving Average lengths.
The way I view a moving average, especially a large one, is that is the average price of stockholders who have held since "that" point in time. So if you're looking at a 50d, it's the average price of shareholders who purchased in the last 50 days. If it's a MONTHLY moving average............NOW you're talking funds who have skin in the game and HAVE had skin in the game for months or years. I want to be one of them if I'm a long/hold investor. I want to "buy" when they buy.
I've always felt, that from a long/holding investing point of view, this study can also be an interesting way to view a coming expansion, after a long market consolidation. View these historical charts and give me your view. Expansion ahead or no?