What is a 'Guppy Multiple Moving Average (GMMA)'?

The Guppy Multiple Moving Average (GMMA) tries to spot trend by combining two groups of moving averages with deferring time periods. The long run EMAs (exponential moving average) represents the interests and behaviors of investors that have taken a long term approach to a given market. The short term EMAs represents traders, or speculators, trying to capture short term profits.



GMMA Indicators

GMMA Indicators

GMMA Crossover

GMMA Laddering Technique

The Guppy Multiple Moving Average is created using two groups of exponential moving averages-The first group of moving averages use extended time of periods and are used to asses long term investor activity. The number of day's used in these moving average are usually 30,35,40,45,50 or 60 EMAs (exponential moving average). This is a indicator setting for long term investor in the market. These moving average are plotted on a chart where traders can look at fractal repetitions.The second group of moving averages have a relatively brief time frame an are used to asses long term investor activity. The number of days used in these moving averages are usually 3,5,8,10,12 or 15 EMAs (exponential moving average). This is a indicator setting for short term investor in the market.The relationship within each of those moving averages groups indicates following points.* When there's agreement on value.* Once they are approximate.* When there's disagreement on value.* Once they are well spaced apart.* When both groups compress at an equivalent time it alerts the trader to increased price volatility and therefore the potential permanently trading opportunities.* The degree of separation within the future group defines trend strength and weakness.* The degree of separation within the short term group defines the character of trading activity.* The degree and nature of separation between the 2 groups of moving averages define the character of the trend.* On has got to trade the direction of the future group of averages.* On shouldn't use it as an easy moving average crossover tool.* Guppy Multiple Moving Average (GMMA) enables effective analysis of the trending environment.* It gives a far better understanding of strength of the trend.* It gives effective evaluation of bizarre price movements. Like dips and spikes.* It follows 'Trend is the best friend' principle of trading.* Guppy Multiple Moving Average (GMMA) isn't effectively applied to trend less or consolidating stocks.* One got to follow trading system of Guppy Multiple Moving Average (GMMA) entirely rather using it bit like another indicator.The simplest method for using the Guppy Multiple Moving Average (GMMA) indicator is to trade a basic moving average crossover system using all of the GMMA EMAs. This technique would buy when all of the short term EMAs cross in particular of the long term EMAs, and sell e=when the hort term EMAs cross below the long term EMAs.A change in price direction that's well supported by both short and future investors signals a robust trading opportunity. It are often applied to both long side and short side. It are often applied to day trading also as for extended term investments style analysis.Laddering trading technique is just adding positions at every support taken by short group near or around long group of moving averages. It follows simply ' Trend is my friend' principle and helps in following the most trend.Add long position whenever short moving averages group gives bullish crossover within its all moving averages whenever it's near or inside long group while long group is rising and in buy mode. It are often utilize in both uptrend also as downtrend; however it's more useful while adding long position in portfolios. This system is used by many portfolio managers worldwide.Traders should use the Guppy Multiple Moving Average (GMMA) in conjunction with other technical indicators to maximize their odds of success. For instance, traders might check out the Relative Strength Index (RSI) or Stochastic to verify signals.* Guppy groups the EMAs into two categories. the primary six are considered short term and therefore the other six are considered long term. The short term EMAs used are 30, 35, 40, 45, 50, and 60.* Along side Guppy, price action, and heikin-ashi charts can help traders identify and capture trending markets.