Simple GMMA Forex Strategy
We have created the Guppy Multiple Moving Average (GMMA) Forex strategy to be very simple and profitable for any currency pair and trade style.
The strategy offers traders wide-ranging ways in which they can decide on using it.
It is possible for anyone to actually polish this strategy to deliver consistent results.
Going forward, the GMMA strategy is a combination of two Guppy Multiple Moving Average types:
- a shorter period group of moving averages
- a longer period group of moving averages
Whether you’re new or an experienced trader, the resources added to this strategy will help you improve your trading performance significantly.
MetaTrader4 Indicators: guppy_multiple_moving_averages.ex4 (Default Setting), GMMA_Long.ex4 (Default Setting), MACD.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example: GBP/USD (Sterling / US Dollar), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the blue line of the GMMA_Long indicator crosses below the red guppy_multiple_moving_averages custom indicator line as seen on Fig. 1.0 with price trading above both lines, the general market sentiment is said to be bullish i.e. a trigger to buy the selected forex pair.
- If the silver MACD indicator histograms float above the 0.00 horizontal level as illustrated on Fig. 1.0, bulls are said to be driving price higher, thus a signal to go long on the designated forex pair.
Stop Loss for Buy Entry: Place stop loss below the most recent swing low.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If the blue line of the GMMA_Long indicator intersects the red guppy_multiple_moving_averages custom indicator line while a bullish trend is ongoing (see Fig. 1.0), bulls power is said to be weaning, as such an exit or take profit is recommended.
- If the MACD Metatrader 4 forex indicator pops up a silver histogram below the 0.00 horizontal level during the course of a bullish trend, it is signaling a likely bearish reversal, as such an exit or take profit will do.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the blue line of the GMMA_Long indicator crosses above the red guppy_multiple_moving_averages custom indicator line as shown on Fig. 1.1 with price trading below both lines, the overall market sentiment is said to be bearish i.e. a trigger to sell the designated currency pair.
- If the silver MACD indicator histograms align below the 0.00 horizontal level as exemplified on Fig. 1.1, bears are said to be dragging price lower, thus a signal to go short on the currency pair of focus.
Stop Loss for Sell Entry: Place stop loss above the most recent swing high.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If during a bearish trend the blue line of the GMMA_Long indicator intersects the red guppy_multiple_moving_averages custom indicator line (refer to Fig. 1.1), bears power is said to be halting, as such an exit or take profit stance is advised.
- If the MACD forex indicator displays a silver histogram above the 0.00 reference level while a bearish trend is running, it is pointing to a probable bullish reversal, as such an exit or take profit will suffice.
Sell Trade Example: GBP/USD (Sterling / US Dollar), H1 Chart
About The Forex Technical Indicators Used
The guppy_multiple_moving_averages is an MT4 technical indicator that draws changing trends via the use of a technique that combines two groups of moving averages with varying time periods.
The GMMA_Long indicator is a variant of the Guppy Multiple Moving Averages (GMMA) and is deployed in spotting changing trends via a method that combines two groups of moving averages with varying time periods.
The moving average convergence divergence (MACD) is a trend-following momentum indicator that reveals the connection between two moving averages of price.
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