The GMMA.

Daryl introduced GMMA in his book, Trend Trading.

The Guppy is a trend-following technique composed of 12 EMAs (or exponential moving averages).

The multiple lines of the Guppy help traders see the strength or weakness in a trend better than if only using one (or two) EMAs.

They separated the 12 EMAs into two groups:

1. A “short-term” group of EMAs.
2. A “long-term” group of EMAs.

Each group contains six MAs.

In the chart above, color differentiates the two groups of EMA.

The “short-term” group is blue, while the “long-term” group is red.

The trend is determined by the long-term EMAs, the short-term EMAs gives signals.

You would enter a trade when a trend reversal occurs, which is indicated when one group crosses over the other group.

When the short-term group crosses ABOVE, the longer-term group, BUY.

When the short-term group crosses BELOW, the longer-term group, SELL.

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