Summary of the Guppy Multiple Moving Average.

Let’s review what we’ve learned with a summary of the Guppy Multiple Moving Average.

The Guppy Multiple Moving Average is a trend-following system.

Trading with the trend helps you win more than lose.

The Guppy can help you visualize both scenarios of either a trend reversal or a trend continuation.

Although a simple indicator, the Guppy system only works best when the price is in a clear trend.

There is no technical indicator that is right all the time.

If you find one, please let me know.

Tips

Here are some tips for trading the Guppy:

• Trade in the direction of the long-term group of EMA.
• The degree and nature of separation in the long-term group of EMAs define long-term trend strength.
• The degree and nature of separation in the short-term group of EMAs define the short-term market sentiment. 
• When both groups are moving in the same direction (both trending up or down), current market sentiment and the overall trend agree.
• A compression of both groups at the same time indicates the potential for a trend change.

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