Guppy's Multi-Moving Average (GMMA)

I found someone.

sir, can you share what are you looking for ?

I'm not looking for it any more as it has almost been completed. I will tell you about it when it is available.

thank you sir

Here's a view of the indicator I have been waiting for. It comes with a risk warning! I haven't tested it yet, having received it today, but I have been thinking about it for a long time. I should also say that I am not planning to promote this and I don't want to distract from what we have been doing for the last few months.

It is only partly based on the Walvekar method in that it borrows from it (it monitors the 10 EMA channel and the 30 EMA and 60 EMA of the long-term Guppy lines). But it is totally different in that it is aggressive in its approach, signalling a trading opportunity the moment all four of those lines are in agreement (i.e. the colours are all blue/green or all red magenta) [EDIT: It also waits for price to break out - see next para]. It does not wait for any further confirmation. Hence the risk warning.

For an alert to be produced, price must also have closed above/below all four lines. This latter feature made the coding easier and most of the time ends up being the same thing as price closing beyond the channel, so it's very close to the Walvekar method in that respect.

This chart shows examples of where it is difficult (where the vertical lines are close to each other) and where it is very profitable - the massive uptrend after the last blue vertical line - it's up to the trader to figure out how to avoid the one and maximise the other

Hi Guys.
Joined FF for the first time because of this thread in general and specifically because of Spudfan and Rajesh to learn more in detail.
But both seem to have taken a big break.
Awaiting for both to return and continue their amazing knowledge.
TIA

That's very kind, but, speaking for myself, it feels as if I'm as much in the dark as anyone else!

My trading style remains firmly with using MAs (of various types and styles, including the GMMAs and variations of that). I also very much like to close all trades by the end of my day. If I can I will place a "basket" of trades earlier in my day and hope for them to reach profit as a collective. When the basket gets to around 1.5% growth on balance (or better) by the end of the London/New York overlap, I will then close all of them regardless of how much profit individual trades have made, given that the basket is worth something decent. This Monday gave me 3.44% in that way, but that doesn't happen often. Then I'm back in the dark wondering what's going on.

You'll notice that I posted recently about a new indicator I had made. It works nicely when placed onto the GMMAs. I also played around with the PSAR indicator and Erebus's 4-bar indicator to see if I could get some edge with any of those. I realised that in fact, simple price action using just the GMMAs (and I added the 120 EMA) was probably as good as it gets. I'll prepare a post on that so you can see what I have been doing.

welcome sagar,
welcome to this forum. this is your first post.
i am using this system since more than 2 years with decent gains. all the rules are very well documented. we have taken a break as there is nothing more to add to. but any inputs or querries from you are most welcome.

this is the trade i am in now.... reliance futures. 50 % retracement, breakout candle where all criteria are fullfilled.
fibo targets from breakout candle to swing low.
T1 and T2 acheived.
recently i have added a third lot, which i am trailing @ 10 ema channel low.

Thanks a lot for both of you.
As a newbie, each of my posts get moderated. So not sure, the time difference between my question / doubts and your answers.
1. As both of you trade intra day specifically, what TF do you actually trade?
2. Is there a specific way to shortlist a particular pair to trade on a particular day, like ADR, no news pair, etc?
3. Today for example, GJ rallied about 330 pips but going by GMMA, rules, not a single entry was possible. Same with EJ and AJ also.
4. I have read lots of times to trade towards HTF. Going by that rule again, no trades in GJ or EJ or AJ, though they moved almost 800 pips combined. How to decide?
More questions to follow.
TIA

Thank you, nice trade!

Here's a chart to give some idea of simple price action as represented in the GMMAs. Whatever else I might use, these characteristics will always show themselves. And to answer your question, I use H4.

Please note that I am not in competition with the Walvekar method. It's a good and robust approach. Starting on 10 March on my chart you will even see the typical new trend / pullback / breakout sequence. If it's there, read it and use it.

Back to the GMMAs - when the red, blue and yellow lines separate, trade that trend. But when they converge and get mixed up, don't trade, except to note that when those lines are close to each other they represent a period of consolidation (the first one-third of my chart). Earlier in this thread I called that a pinch. It still is a predictor of a potentially powerful move out of that zone. It really is something to watch out for.

But for normal trading each day, watch out for small pullbacks to the EMAs and trade those. These small pulbacks are not big, e.g. an inside bar set up or a two- or three-bar pullback. I use a stop order, not a limit order so that if price continues further towards the EMAs and does a "refresh" or crosses over and reverses, my order gets left behind with no damage done. And for as long as the EMAs remain separated, but before they start bellying away from each other, just keep on trading that trend. I use a PSAR trailing stop EA set on 0.015 and 0.2. This helps to squeeze out the most I can from a longer move.

Power moves (explosive candles or even multiple same-colour candles) usually lead to an overbought/sold condition, which the GMMAs represent well. These conditions usually lead to larger pullbacks (sometimes called a "refresh"), or even a reversal. So whenever a power move has occurred, be cautious or close your trade if you have one running. In a nutshell, that's it.

The 4-bar indicator I referred to in my previous post is still of interest. I am having it tweaked and will share it another time.

AUDCAD on H4

Thanks a lot Spudfan.
As you suggested few pages ago, I got 2 different window, 1 with typical GMMA set up (with TDI), 2nd with Rajesh set up with 10 ema channel and RSI 6 and 12.
My issues start with RSI. Im scanning GJ, EJ, AJ, GU, EU, AU and gold.
When i have to consider GMMA rules and RSI rules, I can not see a single set up in any of these pairs.
I want to trade either 15m or 1h intra day or 4h swing trades.
If you go through GJ / EJ / AJ chart today, you will understand my predicament.
Any help will surely be appreciated.
Regards,

Notes as marked on chart.

Now the red, blue and yellow lines are starting to mix together. No trade until things sort themselves out. I have no idea which way this will go from this although, judging by the daily chart, it might go bullish, i.e. a bullish reversal on the daily.

Spudfan, your charts are so neat and uncluttered. Respect.
You do not seem to use either rsi or tdi or stoch. How do you valuate over bought and over sold zones? Both for entries and exits?
If you use only 4h trades, how do you close trades when London and NY overlap or might be by London close? Are your entries by 1 hour after Tokyo open? That will be my second 4h candle open.
TIA

Spudfan, need your comments on this, today GJ

I would be interested to know by what rules you decided there was no trade on the first of those opportunities you marked?

If using just the GMMA approach, you had a long period of very tight consolidation and a big breakout. The consolidation would have been a sign to watch for the breakout. So as soon as you saw the lines beginning to diverge and show open space between them you could have entered. If you were quick, or lucky, you could have got in on those small bars before the big move up. If you notice, they represent a short pullback towards the EMAs before the explosive move up. If you had missed the early entry, you could have waited for the almost inevitable correction / pullback after it and got in on one of those smaller bars. Entering at the end of a large or explosive bar is not usually a good idea because of such a corrective pullback.

Thank you. I do prefer a simple and uncluttered approach, so whenever I play around with various indicators usually I migrate back to clean and simple, eventually.

I stopped using RSI and stochs for this purpose a long time ago. They just didn't work well for me. Overbought/sold is when price looks stretched away from the EMAs. which is usually after a power move of some sort has taken place. Price then moves ahead of the EMAs, which are lagging indicators and then the alarm bells start ringing.

This chart (EURUSD H4) is an example - I know price tends to continue in the direction it has been moving, but right now I would not enter. Scroll down to the daily chart - that's a real power move - correction surely around the corner. And if it doesn't correct and I miss the continued down move, so be it.

Yes, I close my trades at the London close, if things have worked out that way. Often not.

My time zone is UTC+2. So (ignoring daylight saving in the northern hemisphere), the third candle of the day opens at my 08:00, which is 06:00 in London. So I start trading at my 08:00 but it's better to wait for two hours and a bit and get in when the London session opens. But trades I place at that time often sit around doing nothing for a few hours and only really get moving a while before or at my 15:00, which is the NY open. The London session overlaps with the NY session for a further 4 hours and ends at my 19:00. If I could find a way of sitting on my hands until 15:00 my time, it would probably improve my trading, but that level of discipline is beyond me!