GMMA stands for Guppy Multiple Moving Average. This is an indicator of trends and momentum. The Guppy indicator is created by Daryl Guppy, an Australian trader. It combines several moving averages in different timeframes so that traders can see the moving landscape of two different groups of moving averages.

The indicator consists of a group of short-term moving averages and a group of long-term moving averages that filter the price trend on the chart. Both of these groups are made up of six moving averages. That means the GMMA indicator uses 12 moving averages on the chart at the same time to determine trend and momentum.

The 12 moving averages in the GMMA indicator are displayed on the chart at the same time. You will see that they tend to group together, clearly showing the short-term trend with the smaller period moving averages and the long-term trend with the larger periodic moving average. While both the moving averages, the SMA and the EMA, can be used, the EMA is the moving average used mainly to build the GMMA indicator.

The group of short-term moving averages used on the charts for GMMA is:
  • MA 3
  • MA 5
  • MA 8
  • MA 10
  • MA 12
  • MA 15
The group of long-term moving averages used on the charts for GMMA is:
  • MA 30
  • MA 35
  • MA 40
  • MA 45
  • MA 50
  • MA 60
Indicator interface as shown below:


Applying to trade of GMMA indicator

When the entire group of short-term moving averages surpasses the entire group of long-term moving averages, it is a strong signal for a potential uptrend on the chart. And similarly, on the contrary, when the entire group of short-term moving averages crosses below the entire group of long-term moving averages, it's a strong signal of a potential downtrend in the future.

When the two groups of moving averages diverge apart, it is a sign that the current trend is strong. The group of short-term moving averages far above the long-term moving average group, signaling a strong uptrend is in progress. And vice versa, the group of short-term moving averages far below the long-term moving averages suggest a strong downtrend is in progress.

If these two moving averages converge and intersect, it is a signal that the current price is in a sideways, not clear price zone and the previous trend could reverse.

The GMMA indicator usually uses a group of long-term moving averages to determine the direction of trades and a group of short-term moving averages used to identify entry signals.

The GMMA indicator helps traders to identify a market that is trending or not trending with momentum on the chart. And obviously, the traders should use GMMA for good trend trading and momentum trading on the charts.