Thanks for these further explanations. They enhance clarity.
I have traded so much with traditional-horizontal-support and resistance lines. I love using them when trading volatile currencies to identify possible areas of breakouts and breakdowns. My question is: if it is still relevant to combine GMMA with these traditional lines to spot break outs and downs? I know that all moving averages work as support and resistance zones. But in horizontal setups, they seem to perform less than the traditional lines when it comes to identifying possible breakouts and downs. Is this view simply in my head because I have used traditional S&R lines too much such that I’m probably refusing to let go of them as I embark on GMMA usages?
In my opinion, there is no logical reason why MAs would act as S/R. There are loads of different types of MA formulas like EMA, SMA, SMMA, LWMA, VIDYA, HULL, etc and each can be calculated from close, open, high, median, typical, etc, etc. and for every combination of these which period are you going to choose) 5, 10, 14, 20, 34, 50, 100, 200…? and on which timeframe? The permutations are endless!
The only sense in which MAs act as S/R is when it is a commonly looked at MA, like the 200SMA, and it becomes self-fulfilling to a lesser or greater extent. But there is no underlying fundamental reason why buyers/sellers would follow these ever-changing values.
I think it is better to think of MAs as live streaming of the price feed. They create a dynamic smoothing to the constantly changing price movements which identify the current predominant direction and the momentum behind the move. Different markets have different characteristics regarding their pace and depth and that is why different MAs are better suited to different markets.
This is why MA-based methods can work hand-in-hand with horizontal S/R lines. Whenever price approaches such a horizontal level, the GMMA can provide a picture of the nature of the current price streaming and warn whether the price is likely to turn or break through. For example, if the short band is well above the long band when it hits a resistance level and the component MAs are diverging, it would be better to wait for confirmation of a bounce rather than anticipate it beforehand because the streaming is still strongly bullish.
But these are just my thoughts on it…
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Very well said. Its like an ongoing learning process which keeps on changing with time. The more you dive deep in it the more you feel you have sooo much more to explore.
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Hey great! I know that I can continue using them both i.e. the GMMA EMAs and my favourite traditional horizontal S&R lines. (•‿•).
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Have you got any further with this? Or is it not fulfilling its promising start? 
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It’s a great strategy. I love it. I combined it with some other items. I have just been too busy to trade more. I will be shifting to the tourist capital city. So, I have been packing, and arranging mover trucks. I will update you later.
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