Ever wondered why some traders seem to catch trends before everyone else? The secret often lies in understanding the battle between short-term traders and long-term investors. That's exactly what the Guppy Multiple Moving Average (GMMA) reveals.
Created by Australian trader Daryl Guppy, this indicator uses 12 exponential moving averages to show you something most traders miss: the relationship between different market participants. Instead of relying on a single moving average that might give you mixed signals, the GMMA paints a clear picture of market sentiment and trend strength.
Here's what makes it special: six short-term EMAs (3, 5, 8, 10, 12, 15) track trader behavior, while six long-term EMAs (30, 35, 40, 45, 50, 60) follow investor sentiment. When both groups align in the same direction, you're looking at a high-probability trend that's worth your attention.