GMMA FOREX INDICATOR

The Guppy Multiple Moving Average (GMMA) indicator is a simple  MetaTrader 4 technical tool that defines the direction of an asset. It provides a clear picture of the ever-changing trend direction of the market, which would help you in identifying the optimal buy/sell entry/exit and trend reversal zones.

What is the GMMA indicator?

GMMA indicator is a collection of moving averages that form a ribbon-like pattern on the chart, which works in synergy to define the trend bias of the market. It has been well-optimized to detect the changes in the trend direction of the market. Besides, it is also an incredible trading tool that identifies potential price reversal zones. What’s more, the indicator can also assist you to catch the beginning of a trend, which may translate to more positive pips.

How to Trade With the GMMA Indicator

The above image shows the action of the GMMA indicator on the EURUSD currency pair in the M30 time frame. The lime-colored line signals a buy/sell entry when it crosses above/below the other lines of the indicator.

Therefore, you may open a buy/long position after the lime-colored line crosses over the other lines to the upside and sell when it crosses to the downside. However, it is more profitable to use the indicator’s signal as a confluence with price action/other technical trading tools before opening a buy or sell position.

Furthermore, you may refer to the above image, which posits an example of how to use the indicator’s signals along with price action. For instance, the buy signal was also in sync with the bullish engulfing candlestick (price action) above the lines.

Moreover, the ideal zone to place your Stop Loss should be a few pips above/below the intersected lines of the moving averages, while Take Profit is at your discretion.

Conclusion

The GMMA indicator for MT4 is a trend-following system that uses a synergy of multiple moving averages to determine the trend direction and reversal zones in the market. Finally, it is free to download.