Guppy Multiple Moving Averages Forex Indicator
The guppy multiple moving averages indictor for MetaTrader4 that is used in spotting changing trends. The method is made up of the combination of two groups of moving averages with dissimilar time periods.
The guppy_multiple_moving_averages indicator has a set of its moving averages on a fairly brief time frame and can be deployed in spotting price actions for short-term investors. The set of short time averages is basically 3, 5, 8, 10, 12 or 15 days (represented by the red colored lines).
The other set of averages is formed with extended time periods and is deployed in measuring the activity of long-term traders. The number of days that are deployed in the set of long-term averages are 30, 35, 40, 45, 50 or 60 (represented by the green colored lines).
Traders tend to use the relationship between the two sets of moving averages to define if the stance of short-term traders aligns with traders who have an outlook for longer-term.
When two sets of moving averages intersect, a changing trend is imminent. A bullish trend is said to be present when the guppy_multiple_moving_averages indicator short-term moving averages (red colored lines) are aligned above the long-term moving averages (green colored lines).
On the other hand, a bearish trend is said to be present when the short-term moving averages (red colored lines) are aligned below the long-term moving averages (green colored lines).
The guppy_multiple_moving_averages indicator derives its name from Daryl Guppy, an Aussie trader who’s believed to have developed the Guppy Multiple Moving Average – GMMA.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (DiS, UseMainMA), Colors, width & Style.
Time frames: Any
Type: pattern, support/resistance