Guppy Multiple Moving Average (GMMA) for Amibroker (AFL)

kaiji

over 14 years ago

Amibroker (AFL)

The Guppy Multiple Moving Average also known as the GMMA what developed by Daryl Guppy and presented in his book ‘Trend Trading’. Instead of using just 2 moving averages to identify trends, which have limitations. The GMMA uses 2 sets of moving averages. The short-term moving averages are usually 3, 5, 8, 10, 12 and 15 periods and the long term moving averages are usually 30, 35, 40, 45, 50 and 60 periods long.

The GMMA Indicator Should Be Interpreted As Follows:

• Trade in the direction of the long term group of averages

• Compression shows agreement on price and value.

• Compression of the long term and short term moving averages at the same time indicate major re-evaluation of stock and potential for a trend change

• The relationships between the groups provide the necessary information about the nature and character of the trend.

• The amount of separation present between the long term moving averages define trend strength and weakness

• The amount of separation present between the short term moving averages define the nature of trading activity

Indicator / Formula

SetChartOptions(0, chartShowArrows | chartShowDates);

FastMAColor = ParamColor("Fast Group MA Color", colorGreen);
SlowMAColor = ParamColor("Slow Group MA Color", colorRed);

Plot(EMA(C, 3), _DEFAULT_NAME(), FastMAColor, styleLine);
Plot(EMA(C, 5), _DEFAULT_NAME(), FastMAColor, styleLine);
Plot(EMA(C, 8), _DEFAULT_NAME(), FastMAColor, styleLine);
Plot(EMA(C, 10), _DEFAULT_NAME(), FastMAColor, styleLine);
Plot(EMA(C, 12), _DEFAULT_NAME(), FastMAColor, styleLine);
Plot(EMA(C, 15), _DEFAULT_NAME(), FastMAColor, styleLine);

Plot(EMA(C, 30), _DEFAULT_NAME(), SlowMAColor, styleLine);
Plot(EMA(C, 35), _DEFAULT_NAME(), SlowMAColor, styleLine);
Plot(EMA(C, 40), _DEFAULT_NAME(), SlowMAColor, styleLine);
Plot(EMA(C, 45), _DEFAULT_NAME(), SlowMAColor, styleLine);
Plot(EMA(C, 50), _DEFAULT_NAME(), SlowMAColor, styleLine);
Plot(EMA(C, 60), _DEFAULT_NAME(), SlowMAColor, styleLine);

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