The Guppy Multiple Moving Average (GMMA) Indicator for MT4 is a trend-following technical tool that helps traders determine the direction and strength of the market trend. Developed by Australian trader Daryl Guppy, this indicator combines multiple moving averages into a unified system, forming a visually appealing ribbon-like pattern on the chart.
The GMMA indicator consists of two groups of exponential moving averages (EMAs):
Short-term EMAs: Represent active traders reacting to recent price changes.
Long-term EMAs: Represent investors watching broader market trends.
When both groups of EMAs move in harmony, they confirm a strong trend. When they compress or cross, they signal potential trend reversals or consolidation phases.
The GMMA uses a combination of 12 exponential moving averages, typically split into two sets:
Short-term group: 3, 5, 8, 10, 12, and 15 EMAs.
Long-term group: 30, 35, 40, 45, 50, and 60 EMAs.
These EMAs move together to form a ribbon structure. When the short-term lines separate and expand above the long-term lines, it signals bullish momentum. Conversely, when the short-term group crosses below and expands under the long-term group, it indicates bearish pressure.
This clear visual layout helps traders identify:
The start of a new trend
Continuation of an existing trend
Potential reversal or trend exhaustion
Trading with the GMMA Indicator MT4 is straightforward once you understand how the EMAs interact.
Wait for the lime-colored short-term EMA to cross above the longer-term EMAs.
This crossover indicates a bullish trend and potential buy signal.
Confirm with bullish price action such as a bullish engulfing candle or breakout above resistance.
Place a stop-loss a few pips below the moving average cluster.
When the lime-colored short-term EMA crosses below the long-term EMAs, it signals a bearish trend.
Look for bearish confirmation from price action (e.g., bearish engulfing pattern).
Place stop-loss slightly above the cluster of EMAs.
You can set take-profit at the next support/resistance level or use a trailing stop to capture extended trends.
The Guppy Multiple Moving Average Indicator offers several key benefits:
Identifies early trend changes with precision.
Visually clear representation of short- and long-term trader behavior.
Works on all timeframes and assets, including forex, stocks, and commodities.
Combines trend detection and confirmation in one indicator.
Ideal for swing trading and position trading.
Combine GMMA with support and resistance zones or momentum oscillators like RSI or MACD.
Avoid trading during periods of low volatility or tight EMA compression.
Use GMMA on higher timeframes (H1, H4, or D1) for more reliable signals.
Always follow risk management rules — risk only a small portion of your account per trade.
The GMMA Indicator for MT4 is a dynamic and reliable tool that helps traders visualize trend direction, identify reversals, and spot high-probability entry zones. By combining short- and long-term moving averages, it provides a comprehensive view of market momentum.
Published:
Nov 06, 2025 11:41 AM
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