Guppy MA indicator

Guppy MA

On indicators Guppy Multiple Moving Average (GMMA), is an indicator device which calculates the relationship at any Moving Average. Each group will produce a MA in GMMA two great powers of the market, namely traders and investors. This indicator gives a picture of us on the proper relationship between trading methodology with GMMA. This indicator is designed to explain the trend of activity daily or intraday basis (trading for several hours). Groups Moving Averages Moving Averages are used in the short term. Where the trader can always see any change from this trend. MA group it was 3, 5, 8, 10, 12 and 15. The group Moving Averages be made ​​to determine a trend. If there is no trend, then this indicator does not function. Guppy MA article was first released in the article Trend Trading (April 4) by Daryl Guppy.  

A trader will enter the market at the moment it appears there was a change in the Moving Average. They always menganstisipasi any change in trend. Strong trend will be very helpful for long-term investors. Investors prefer to use Moving Averages indicator for the long term.   

Application
Naturally on this indicator used to measure a trend. This indicator can be applied to long-term trading and day trading. Briefly to display the indicator Guppy is to incorporate in your chart MA period: 3, 5, 8, 10, 12 and 15 (for short-term Guppy), and MA 30, 35, 40, 45, 50 and 60 (for the term Guppy length). There are three correlations in Guppy indicators, namely:

1. Character for the long-term trend.
2. Characters for short-term trend.
3. The relationship between the two trends.

Movement can indicate a long-term trend is an important thing and would be useless without an understanding of a trader. Strength of a long-term trend indicates strong understanding of the long-term trader about a trend that is currently in effect. If this group split, went up and then parallel this trend indicates a very strong influence. This reduces the occurrence of a change in trend abruptly. Guppy indicator with character for short-term trend is suitable for a type of rebound trader or price pullback suddenly. The latter is the relationship between the two groups. This method will never be threatened. This method is considered the most safe for our use in the trade.

Formula  
Formula MA which is often used in Guppy indicators are: 3, 5, 8, 10, 12 and 15 (for short-term Guppy) and 30, 35, 40, 45, 50 and 60 (for the long term Guppy).  

Function
From the above explanation, it can be concluded that the function of the indicator MA Guppy is used to seeing a trend movement is going on. As for option trading, it all depends on ourselves, willing to trade short term or long term, we can take the opportunity to gain an advantage. Tactics On this indicator it is better if you use the tactic, here are some tactics or philosophy of the use of indicator Guppy:

• Combine the price trend at the lowest price point.
• Combine the price trend at the highest point of the price.
• trading when prices rise and fall so quickly.
• trading when prices rise and fall so quickly when there is a change in trend.

 

Excellence

1. Can measure the movement of a trend that is happening.
2. Can determine the strength of the movement of a trend.
3. Effective in measuring a change in the price movement when up or down.

Weakness  
Can not be combined with moving averages, because the function is the same, namely to read a trend that is happening.   Conclusion   Based on the function that I have described above, this indicator can increase our knowledge, especially in measuring a trend that is happening.