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Trend following
Is GMMA watching a cross, or watching the groups open?
Guppy multiple moving average · GMMA
What it bets
When a short-term group of averages and a long-term group separate and keep their order, the trend is continuing. When the two groups compress, the trend is hesitating.
How the rule is written
Daryl Guppy splits several exponential averages into a short-term group and a long-term group. Traders watch the two groups separate and compress, and whether the short-term group finds support from the long-term group. It is not a reading of one golden cross.
When it fails
When the two groups are tangled, every small separation looks like a start. That is usually still a chop.
Do not confuse it with
Dual and triple averages are a cross or an alignment of a few lines. GMMA is about the width of two ribbons.