The Guppy Multiple Moving Average

[Masterchief]

FrankC,

In your chart, on Dec10th, between 4 and 10, i noticed the EUR/USD formed a morningstar formation. Might have been a good opportunity to buy back the Short for a modest gain, then go long until it maxed out against the oscilator you have.

 

[pksam]

Shri sh50,

In Metastock, instead of using Print Screen, I save the chart as .html (File > Save as HTML). In the Save as HTML dialog box one has the choice of saving the chart as a.jpeg or a .png file.

After saving, there would be two files - a html file and a .png or .jpeg file. Delete the .html file. Now there is just the image of the chart left (.jpeg/.png), without toolbars, menubars, status bars, etc..

pksam

 

[careless1]

Here are the charts of nifty (02/12/2005, 06/12/2005, & 09/12/2005). This are the "snapshot" from Medved QT. Entry (both short & long) are indicated but what about exit ?

 

[Traderji]

For an exit strategy I normally recommend traders to use a trailing stoploss (which can be the low of the previous bar) the moment the bars hit the upper bollinger band.

Thi ss a simple but extremely effective EXIT strategy to help any trader capture a large chunk of a strong move!

 

[careless1]

Thanks a lot Sir for your quick and to-the-point reply.
I'll be using this startegy and shall be posting the results.
Have a nice day.

 

[rahulg77]

Hi,

Wonderful post. I was trying to find out baout guppy and keneth guided me through this post. Thanks keneth.

So is anyone using this method of MMA. Also how did one survive with thsi method in the may crash as ina ranging market this would give lot of wipsaws. Has anyone read Guppy's book? Does he also explain trading volatile markets.

Rgds

Rahul

 

[linuxtroll]

Hi,

Wonderful post. I was trying to find out baout guppy and keneth guided me through this post. Thanks keneth.

So is anyone using this method of MMA. Also how did one survive with thsi method in the may crash as ina ranging market this would give lot of wipsaws. Has anyone read Guppy's book? Does he also explain trading volatile markets.

Rgds

Rahul

Volatile markets are much easier with GMMA; You can always pick another timeframe and trade as soon as you detect whipsaws in your timeframe... GMMA also help you to identify whipsaws earlier than other indicators...

 

[munchikana]

How to identify trends and trading ranges using the Guppy Multiple Moving Average

The Guppy Multiple Moving Average (GMMA) indicator tool is based on the relationships between groups of moving averages. Each group of averages in the GMMA provides insight into the behavior of the two dominant groups in the market - traders and investors. The indicator allows the trader to understand the market relationships shown in the chart and so select the most appropriate trading methodology and the best tools. The GMMA is designed to understand the nature of trend activity on an end of day, or intraday basis.

The inferred activity of traders is tracked by using a group of short term moving averages. The traders always lead the change in trend. Their buying pushes up prices in anticipation of a trend change. Their activity is shown by a 3, 5, 8, 10, 12 and 15 day group of exponentially calculated moving averages.

The trend survives only if other buyers also come into the market. Strong trends are supported by long term investors. The investor takes more time to recognize the change in a trend but he always follows the lead set by traders. We track the investors' inferred activity by using a group of long term moving averages. This group is 30, 35, 40, 45, 50 and 60 day exponentially calculated moving averages.

Metastock Formula:

Guppy's MMA Long Term (Colour RED)

Mov(C,30,E);Mov(C,35,E);Mov(C,40,E);
Mov(C,45,E);Mov(C,50,E);Mov(C,60,E)

Guppy's MMA Short Trem (Colour BLUE)

Mov(C,3,E);Mov(C,5,E);Mov(C,7,E);
Mov(C,10,E);Mov(C,12,E);Mov(C,15,E);

Well if you want me to procede further with this trading lesson discussion, I would want you all to post your favourite security with the following two indicators overlaid on it along with your comments.

Dear Traderji,
A great educative letter indeed. I am again wondering as to how I missed this one for so long. However, one doubt still lingers in my mind. Why no further discussion has taken place on this for such a long time? Is it because, there has not been any guiding letters/posts as to how to use and apply this Guppy MMM in the real life situation? Kindly note the highlighted portion of Traderji's initial post on this subject. Traderji has promised that he will give trading lesson on this subject. Really nice of you Traderji. May I expect some lessons on this shortly from you? I am really interested to learn this one.
With lot of thanks and warm regards
Munchikana

 

[anaas]

Very nice information.

 

[mfire]

Dear Traderji
Very nice explaination on GMMA. Can you explain me Delta Neutral Strategy. Many a times it has been observed that this strategy can help to pick early change in trend.
Thanx in advance.
Mfire.