Guppy Multiple MA - Short Term VertexFX Indicator

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Guppy Multiple Moving Average – Short (GMMA Short) is Client Side VTL Indicator. It is a set of five shot term exponential moving averages of period 3, 7, 10, 12 and 15. GMMA Short is used to identify and trade the short term trend. Single moving average and price cross over strategies are associated with many choppy trades. GMMA short with five short term moving averages is able to eliminate such choppy cross over. When all the moving averages are moving upward, a short term uptrend is in place and in a down trend, all the six moving averages move downward. In trading ranges, the averages are placed close together, when the trend is strong, they depart from each other and slope in the direction of the trend. See the image attached.
Buy position can be opened when the moving averages turn upward and diverge from each other. Sell position is opened when the GMMA short turns downward and diverge from each other. This is a short term trading strategy. After opening a position, if the moving averages converge together, short term trend is losing momentum and positions can be closed.
The zone formed by the GMMA act as short term support or resistance. This can be used to open pull back trades. When price comes back to the support zone formed by GMMA and again break above the support zone, Buy can be initiated. For a pullback Sell, price must test the resistance zone formed by the GMMA and again break below it. GMMA short is useful to short term trend following.

Attached Files

Guppy_Multiple_Moving_Averages_Short.zip (2.1 KB)