I am now going to summarise the characteristics of the GMMA (Direction) indicator before looking at some special uses.
This is what to look for in the start of a trend (up or down) >>>
The 2 groups of averages tend to sqeeze and have a gentle slope for the crossover.
The lines tend to crossover in a single point.
Now contrast the above with a RALLY >>>
Instead of squeezing, the red, long term averages remain well separated before the crossover, which, in itself, is very steep.
The lines may not form a nice point when they cross over.
Notice also that the blues and the reds are themselves very separated before the crossover as well.
Now to answer a question that has come up…
Can we not just use 2 moving averages?
Lets have a look at the difference between using 2 moving averages and using the GMMA…
Here is a chart with just 2 moving averages >>>
Which way is the price action most likely to go?
We think up don’t we - after all, there is a crossover.
In using the GMMA (Direction) we get a much better picture >>>
Here the red long term averages have been going down strongly and the 60 ema is still going down.
There is considerable doubt.
With the GMMA we wait for further price action to confirm our decision.
Here is the same chart with the Direction indicator added >>>
The result is obvious.
The GMMA provides much more information and, therefore, better trading decisions can be made.
Here is another case in point.
We have a break of a trendline in this downtrend of 20 minute Cable >>>
Should we trade the uptrend?
After all, we do have a break in the trendline indicating the end of a downtrend, do we not? 
Lets apply the GMMA (Direction) to get a better answer >>>
We see that the red long term averages are still widely separated and are still going down/at least partly stalled.
So NO - we do not enter into the “uptrend”, we wait for futher confirmation instead.
Before we go to methods of entering and exiting with this indicator, I need to give you the program for it so that you can put it on your own chart.
Of course, you can load each ema separately, give it the correct value, then color it and do this…12 times. :eek: :eek:
Much better to have the indicator all in one so that a couple of mouse clicks loads the entire thing!! 
I have written the program in GFT Ctl language but I ask that someone translates this into MT4 language.
[B]Here is how to load the program in GFT…[/B]
Open a new file in My Documents - call it “Dealbook” or similar if you like.
Open the [B]Chart Studio[/B] program and click[B] file/new[/B]
[B]copy/paste[/B] the following…
indicator A_DIRECTION ;
draw line_one(“EMA 1”, solid_line, dark_blue,2), line_two(“EMA 2”, solid_line, blue,2), line_three(“EMA 3”, solid_line, blue),
line_four(“EMA 4”, solid_line, blue), line_five(“EMA 5”, solid_line, blue), line_six(“EMA 6”, solid_line, blue),
line_seven("EMA 7", solid_line, red), line_eight("EMA 8", solid_line, red), line_nine("EMA 9", solid_line, red),
line_ten("EMA 10", solid_line, red), line_eleven("EMA 11", solid_line, red), line_twelve("EMA 12", solid_line, red);
begin
line_one := ema(close, 3);
line_two := ema(close, 5);
line_three := ema(close, 8);
line_four := ema(close, 10);
line_five := ema(close, 12);
line_six := ema(close, 15);
line_seven := ema(close, 30);
line_eight := ema(close, 35);
line_nine := ema(close, 40);
line_ten := ema(close, 45);
line_eleven := ema(close, 50);
line_twelve := ema(close, 60);
end.
Click [B]Build/instal [/B]module.
Type [B]“A_Direction”[/B] into the file entry box.
Click [B]save[/B]. (program installed successfully appears below).
[B]Translaters into MT4 wanted.[/B]
The purpose of the[B] A[/B] in front of the word [B]Direction [/B]is to set this indicator at the very front of the indicator list.
The indicators are done in alphabetical order.
By doing this, we [U]do not have to scroll [/U]to find the indicator.
Instead it appears first up - then all we do is [B]click, click[/B] and it is on our chart!! 
TOPIC 7
TREND ENTRIES AND EXITS WITH INDICATORS
This is new material, and for this we turn to work developed by master Australian trader Leon Wilson.
The problem with the GMMA is where to enter or exit?
>>>
Already done.
Thanks BP:)
Good observation [B]Master Tang!![/B]
Great stuff [B]Baby Pipper!! [/B]
wow - I have never seen anyone put so much work into something on this forum Tymen. I thought your last thread was a major contribution but this surpasses it. Guppy and Wilson were 2 of my early influences in share trading and I have never thought of FX as being predictable enough to use their teachings - I am hooked!
Thank you [B]Tonymand[/B].
I always look to you as one of the stabilising influences on this forum - a breath of fresh air amongst all the waffle.
I hope you will find the rest of this thread interesting - I have a long way to go yet!!
Certainly look forward to read more as it is released. All this is greatly helping me already; many thanks Tymen!
wow!!
I have tried this indicator today with usd/cad 2H chart! I’ve entered today at 1.0371 on the black down going candle. The red MA lines were widely spaced. The all chart was looked as a downtrend. But I am right now at -63 pips (as usually:( ). Where I did mistake tymen1?
You must be know better than anyone around here that theory without practice is like a flower without the root. Would you mind to analyze that chart please?
Patience is an essential tool for the proffessional trader. As yet this thread is very young and entries and exits have not been discussed. The topic is very exciting but avoid temptation until all is in place
best regards
Couldn’t have said it better.
Best Regards,
Matt Jones 
.
