Guppy Multiple Moving Average (GMMA)
What is it?
What it measures:
Combines two sets of exponential moving averages (short-term trader group vs long-term investor group) to evaluate market consensus and trend conviction.
How to interpret it:
- Short-Term Group (Green): Reflects short-term trader sentiment and momentum shifts.
- Long-Term Group (Red): Reflects long-term institutional investor sentiment.
- Group Compression/Expansion: Short-term group crossing cleanly above an expanding long-term group confirms major bull trend continuation.
Used for:
- Identifying institutional trend alignment and breakout strength.
Limitations:
- Visual complexity requires multi-line chart rendering.