Learn Forex – Guppy Multiple Moving Averages (GMMA) in Forex Trading
Learn Forex (FXpath.com) – The GMMA, or Guppy Multiple Moving Averages, was developed by Daryl Guppy, an Australian trader. See the accompanying EUR/USD chart with the GMMA set of moving averages overlaid on top. Used by many forex traders, this multi-faceted indicator combines two different sets of moving averages. One set (the longer-term moving averages: 30, 35, 40, 45, 50, and 60 periods) represents a currency pair’s long-term traders, and the other set (the shorter-term moving averages: 3, 5, 8, 10, 12, and 15 periods) represents a currency pair’s short-term traders. There are several ways to interpret the GMMA, the most recommended of which has to do with looking at the separation between each individual moving average as well as the separation between the two sets of moving averages. These separations reveal vital information regarding trend strength, both short-term and long-term, as well as pullbacks within a trend and potential impending changes in trend. They can also provide specific trade entries and exits in the direction of the prevailing trend. For more detailed information on this dynamic indicator and how it can be applied to forex trading, please click on the following link: http://www.guppytraders.com/gup329.shtml .
James Chen, CTA, CMT (bio)
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