GMMA — Guppy Multiple Moving Average

Overview

The Guppy Multiple Moving Average plots two groups of EMAs — six short-term and six long-term — to visualise the interaction between trader sentiment and investor sentiment as a ribbon, revealing trend strength and potential reversals. GMMA is widely used in stock and forex markets to identify early trend participation. Set it up on TradingView and combine with the RSI for timing entries.

How It Works

The short-term group uses EMAs of 3, 5, 8, 10, 12, and 15 periods (representing traders). The long-term group uses EMAs of 30, 35, 40, 45, 50, and 60 periods (representing investors). When both groups expand and separate, trend conviction is high; when they compress and converge, a potential reversal or consolidation is forming.

Key Signals

• Short-term group crossing above long-term group = bullish trend change.
• Wide separation between groups = strong trend with high conviction.
• Compression of both groups = indecision and potential breakout.
• Short-term group fanning out after compression = early trend momentum.

Common Mistakes

• Trading during compression without waiting for a clear separation.
• Using GMMA on very low timeframes where the ribbon becomes noisy.
• Ignoring the long-term group — it represents the larger institutional trend.