**Guppy Multiple Moving Averages (GMMA)** is a smart trend-following indicator created by trader **Daryl Guppy**. It gives traders a clearer view of market strength by combining multiple exponential moving averages (EMAs) to track both short-term and long-term behavior.
What Makes Up GMMA?
GMMA uses **two distinct sets of EMAs**:
Short-term EMAs (for active traders):** 3, 5, 8, 10, 12, and 15 periods
Long-term EMAs (for investors):** 30, 35, 40, 45, 50, and 60 periods
These lines appear as two “ribbons” on a price chart. The short-term group reflects quick trader reactions, while the long-term group shows the confidence of bigger market players.
How to Read It
When **both groups are moving upward and widely spaced**, it signals a strong and healthy uptrend.
If the **short-term EMAs start rising and separate from the long-term ones**, it could mean the start of a bullish move.
If the **short-term EMAs flatten or cross below the long-term EMAs**, it may suggest weakness, consolidation, or a possible trend reversal.
Why Use GMMA?
Helps confirm the **strength and direction of a trend**
Clearly shows when traders and investors **agree or disagree**
Useful for spotting **entry and exit points** in trending markets
Final Thoughts
GMMA offers a visual and reliable way to understand market momentum by blending short- and long-term perspectives. Whether you're a trader or an investor, it can add depth to your technical analysis and improve decision-making in trending environments.
