DEFINITION of 'Guppy Multiple Moving Average  GMMA'
An indicator used in technical analysis to identify changing trends. The technique consists of combining two groups of moving averages with differing time periods.
One set of moving averages in the Guppy multiple moving average (GMMA) has a relatively brief time frame and is used to determine the activity of shortterm traders. The number of days used in the set of shortterm averages is usually 3, 5, 8, 10, 12 or 15.
The other group of averages is created with extended time periods and is used to gauge the activity of longterm investors. The longterm averages usually use periods of 30, 35, 40, 45, 50 or 60 days.
BREAKING DOWN 'Guppy Multiple Moving Average  GMMA'
The relationship between the two sets of moving averages is used by traders to determine if the outlook of shortterm traders aligns with investors who have a longerterm outlook.
Changing trends are identified when the two groups of moving averages intersect. A bullish trend is present when the shortterm moving averages are above the longterm averages. Conversely, a bearish trend occurs when the shortterm averages are below the longterm averages.
This term gets its name from Daryl Guppy, an Australian trader who is credited with its development.

Simple Moving Average  SMA
A simple, or arithmetic, moving average that is calculated by ... 
Linearly Weighted Moving Average
A type of moving average that assigns a higher weighting to recent ... 
Mean Reversion
A theory suggesting that prices and returns eventually move back ... 
Optimization
In the context of technical analysis, it is the process of adjusting ... 
Market Average
A measure of the overall price level of a given market, as defined ... 
Moving Average Chart
A tool used by technical analysts to track the price movements ...

Active Trading
Moving Averages: How To Use Them
By Casey Murphy, Senior Analyst ChartAdvisor.com Some of the primary functions of a moving average are to identify trends and reversals, measure the strength of an asset's momentum and determine ... 
Trading Strategies
Technical Analysis: Moving Averages
By Cory Janssen, Chad Langager and Casey MurphyMost chart patterns show a lot of variation in price movement. This can make it difficult for traders to get an idea of a security's overall trend. ... 
Active Trading
Moving Averages: Factors To Consider
By Casey Murphy, Senior Analyst ChartAdvisor.com Data Used in Calculation Most moving averages take the closing prices of a given asset and factor them into the calculation. We thought it would ... 
Active Trading
Moving Averages: Strategies
By Casey Murphy, Senior Analyst ChartAdvisor.com Different investors use moving averages for different reasons. Some use them as their primary analytical tool, while others simply use them as ... 
Active Trading
Moving Averages: What Are They?
By Casey Murphy, Senior Analyst ChartAdvisor.com Among the most popular technical indicators, moving averages are used to gauge the direction of the current trend. Every type of moving average ... 
Technical Indicators
Use Moving Averages to Buy Stocks
A moving average constantly updates a stock's average price, but it cannot predict a stock's performance. 
Chart Advisor
Two Stocks Getting Ready To Move Lower
Will today's bearish crossover between the 50day moving average and the 200day moving average signal the start of a longterm downtrend? 
Term
What's a Death Cross?
A death cross is seen when the shortterm moving average of a security or index falls below its longterm moving average. 
Forex Education
Keep It Simple  Trade With The Trend
Often, the simple solution is the best one. Find out how easy it can be to trade with the trend. 
Technical Indicators
Using Technical Indicators To Develop Trading Strategies
Unfortunately, there is no perfect investment strategy that will guarantee success, but you can find the indicators and strategies that will work best for your position.

What is the Guppy Multiple Moving Average (GMMA) formula and how is it calculated?
Find out how Australian trader Daryl Guppy designed a system of 12 separate moving averages to measure the relationship between ... Read Answer >> 
What is a common strategy traders implement when using the Guppy Multiple Moving ...
Learn how to interpret the relationship between the trader and investor price signals of the Guppy multiple moving average ... Read Answer >> 
How do I use Guppy Multiple Moving Average (GMMA) to create a forex trading strategy?
Find out how to use the 12 moving average lines of the Guppy Multiple Moving Average (GMMA) model to spot trends and place ... Read Answer >> 
What does it mean when an index or stock exhibits a death cross?
Find out what it means when an index, stock or exchange exhibits a death cross pattern between its shortterm and longterm ... Read Answer >> 
What is the difference between a simple moving average and an exponential moving ...
The only difference between these two types of moving average is the sensitivity each one shows to changes in the data used ... Read Answer >> 
How can I use simple moving averages to signal when to buy or sell stocks?
Learn about simple moving averages, simple moving average strategies and how to use these strategies to signal buy and sell ... Read Answer >>