JSun - Guppy Multiple Moving AverAge

2020년 6월 28일

The Guppy Multiple Moving Average (GMMA) is a technical indicator that identifies changing trends, breakouts, and trading opportunities in the price of an asset by combining two groups of moving averages (MA) with different time periods. There is a short-term group of MAs, and a long-term group of MA. Both contain six MAs, for a total of 12. The term gets its name from Daryl Guppy, an Australian trader who is credited with its development.

Key Takeaways:
1. The Gruppy Multiple Moving Average (GMMA) is applied as an overlay on the price chart of an asset.
2. The short-term MAs are typically set at 3, 5, 8, 10, 12, and 15 periods. The longer-term MAs are typically set at 30, 35, 40, 45, 50, and 60.
3. When the short-term group of averages moves above the longer-term group, it indicates a price uptrend in the asset could be emerging.
4. When the short-term group falls below the longer-term group of MAs, a price downtrend in the asset could be starting.
5. When there is lots of separation between the MAs, this helps confirm the price trend in the current direction.
6. If both groups become compressed with each other, or crisscross, it indicates the price has paused and a price trend reversal is possible.
7. Traders often trade in the direction the longer-term MA group is moving, and use the short-term group for trade signals to enter or exit.

2020년 6월 28일

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Jun.28, 2020 Changed Some Comments