The trend is your friend with the Guppy Multi Moving Average (GMMA) forex system.
The system consists of 5 exponential moving average categories (short-term and long-term) to define the major currency trend.
This simple system buys when the short-term EMA’s lie above the long-term EMA’s. Vice versa, it sells when the short-term EMA’s lie below the long-term EMA’s.
The GMMA works extremely well in a trending enviroment.
Some traders rake in hundreds of pips profit per trade on the higher time frame’s using the GMMA system.
Indicators: RainbowMMA_01, RainbowMMA_02, RainbowMMA_03, RainbowMMA_04, RainbowMMA_05, RainbowMMA_06, RainbowMMA_07, RainbowMMA_08, RainbowMMA_09, RainbowMMA_10, RainbowMMA_11
Preferred time frame(s): Any
Trading sessions: Any
Preferred Currency pairs: Any
Example: EUR/USD 15 Min Chart
As shown in the chart above, all short-term EMA’s below the long-term EMA’s gives us a sell signal (first trade).
All short-term EMA’s above the long-term EMA’s gives us a buy signal (see trading rules below). Click on the picture to enlarge.
- Yellow EMA’s > Orange EMA’s > Blue EMA’s > Green EMA’s > Red EMA’s
==> Go long now.
Stop-Loss: Place a stop-loss below the red EMA’s.
Objective Methods: (1) Trail stop up just below the rising red EMA’s until you get stopped out from the buy trade. (2) Use risk-to-reward 1:3 (i.e risking 100 pips to gain 300 pips)
- Yellow EMA’s < Orange EMA’s < Blue EMA’s < Green EMA’s < Red EMA’s
==> Go short now.
Stop-Loss: Place a stop-loss above the red EMA’s.
Objective Methods: (1) Trail stop up just above the falling red EMA’s until you get stopped out from the sell trade. (2) Use risk-to-reward 1:3 (i.e risking 50 pips to gain 150 pips)