GMMA - MetaTrader 5 Script | Trading Script Download - MT4/MT5 Resources - MetaTrader 5 Resources

Daryl Guppy is a professional trader and author of Trend Trading , Trading Strategies , and Better Stock Trading: Money and Risk Management . He leads trade seminars in Australia, Asia, China and the United States.

The Guppy Multiple Moving Average (GMMA) is an indicator moving average based on the relationship between groups. Each set of moving averages in the GMMA indicator provides insight into the behavior of the two main market groups: traders and investors. This indicator allows traders to understand the market relationships shown on the chart and thus choose the most appropriate trading methods and tools. The GMMA indicator is designed to understand the nature of daily or intraday trend changes.

Implied trader activity is tracked by using a set of short-term moving averages. Traders always initiate trend changes. Their actions drive prices up in anticipation of a trend change from down to up. Their activity is shown in a set of 3, 5, 8, 10, 12 and 15 period exponential moving averages.

This trend will continue as long as other buyers also enter the market. Strong trends are supported by long-term investors. Investors need more time to identify trend changes, but they always follow traders. We use a set of long-term moving averages to track implied investor activity. This group includes 30, 35, 40, 45, 50 and 60 period exponential moving averages.

The GMMA indicator is used in six trading situations:

The smoothing algorithm can be chosen from ten possible versions:

It should be noted that the Phase1 and Phase2 parameters have completely different meanings for different smoothing algorithms. For JMA, it is an external phase variable that varies from -100 to +100. For T3, it is the smoothed ratio multiplied by 100 for better visualization; for VIDYA, it is the CMO oscillation period; for AMA, it is the slow EMA period. In other algorithms, these parameters do not affect smoothing. For AMA the fast EMA period is a fixed value, equal to 2 by default. For AMA, the ratio of raised powers is also equal to 2.

The indicator uses the SmoothAlgorithms.mqh library class (must be copied to terminal_data_folder\MQL5\Include). The use of the class "Average price series for intermediate calculations without using additional buffers" is described in detail in the article.

Indicator input parameters:

Attachment download

📎 gmma.mq5 (9.76 KB)

📎 smoothalgorithms.mqh (133.8 KB)

Source: MQL5 #692