What it is
The Guppy Multiple Moving Average (GMMA) is a technical tool developed by Daryl Guppy to identify trend strength and reversals.
How it works
It uses two groups of exponential moving averages:
- Short-term group: Reacts quickly to price changes.
- Long-term group: Represents the dominant market trend.
Trading signals
Traders look for crossovers between the two groups. When short-term averages cross above the long-term group, it indicates a bullish trend. Conversely, a cross below signals a bearish momentum shift.
Basic settings
Standard settings include 3, 5, 8, 10, 12, 15 for the short-term group and 30, 35, 40, 45, 50, 60 for the long-term group. This content is for educational purposes only, not financial advice.
