The “GMMA” indicator makes trend judgment very easy by displaying various moving average lines (MAs) on the chart. This improved version of the “GMMA” indicator additionally adds the 200-day moving average (200 MA) to the group of plotted MAs - making it even easier to determine long-term trends.
Here, we introduce a very handy indicator for MT4 that will make the job much easier for many Forex traders.
GMMA is an abbreviation for “Guppy Multiple Moving Average”. This indicator is named after Daryl Guppy, the trader who invented it. In Japan, it is also called “Composite Moving Average”.
The GMMA indicator displays 12 moving average lines - a group of 6 short-term MAs and a group of 6 long-term MAs. All MAs use the exponential smoothing formula for the calculation. The characteristic and the primary advantage of this indicator is that it makes it much easier to judge trends by displaying all useful MAs together.
The short-term group of MAs is said to represent trading behaviors of speculators, etc. mainly for short-term investments, and the long-term group of MAs is considered to represent the trading behavior of major banks, etc., mainly for long-term investments. The essence of the GMMA is to trade on the side of the big institutional investors such as major banks.
The standard GMMA indicator has a weak point in that there is no ultra-long-term MA. This that we introduce here adds such an MA, namely the 200-day moving average line. In this way, it is also useful for ultra-long-term trend judgment.
Tips for using:
The GMMA indicator is very versatile. You can use it as you like, but here are a few suggestions for making the most out of it.
1. Use for trend judgment
2. Use for joining already existing trends.
3.Crossover between short-term MA group and long-term MA group
Compatibility: For MT4
Download "GMMA_200MA" for free from the button below
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