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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