Guppy Multiple Moving Average – Long is Client Side VTL Indicator. Guppy Multiple Moving Averages (GMMA) Long is used to identify the long term trend in the instrument. It is a set of six exponential moving averages of period 30, 35, 40, 45, 50 and 60. When all the moving averages are sloping upward, a long term uptrend is in place and in a down trend, all the six moving averages slope downward.
GMMA Long can be used as trend filter as well as to generate trading signals. In trading ranges, the averages are placed close together, when the trend is strong, they depart from each other and slope in the direction of the trend. Buy signals can be generated when price is trading above all the averages and the averages slope upward. Opposite situation can be used to generate sell signals. The image attached illustrates the behavior of the GMMA Long in trading ranges and trends. In strong trends, the zone marked by the averages acts as support or resistance. This can be used to enter pullback trades.
GuppyMultipleMovingAveragesLong.zip (2.27 KB)