Gubi Moving Average (GMMA) is a technical indicator that identifies trends by combining two sets of moving averages with different time periods. This term is named after DARYL GUPPY, Mr. GUPPY is an Australian trader, the development of GUPPY is attributed to him.

  Analysis of Guby Moving Average-GMMA

   Created GMMA with two sets of motion averages:

Short-term: The first set of moving averages have a relatively short time and are used to evaluate short-term trading activities. The number of days used in these moving averages is usually 3, 5, 8, 10, 12, or 15.

Long-term: The second group of moving averages uses extended time periods to evaluate long-term investor activity. The number of days used in these moving averages is usually 30, 35, 40, 45, 50, or 60.

These twelve moving averages are all plotted on a chart, and traders can view the fractal repeats. In particular, traders will study the relationship between the two moving averages to determine whether short-term trading prospects are consistent with long-term investment prospects.

Application of GMMA

Multiple moving averages can be used to identify changes in trends or measure the strength of current trends.

Trend strength: The degree of separation between short-term and long-term moving averages can be used as an indicator of trend strength. If there is a wide separation, then the prevailing trend is strong, and vice versa.

Trend reversal: The convergence and crossover of short-term and long-term moving averages represents a trend reversal. If the short-term crossover exceeds the long-term moving average, there is a bullish reversal, and vice versa.

Traders should use GMMA values ​​together with other technical indicators to maximize their chances of success. For example, a trader may check the Relative Strength Index (RSI) to confirm whether the trend is becoming the heaviest and ready to reverse, or check various chart patterns to determine the entry or exit point after the GMMA crossover.

What is the Gubi moving average in foreign exchange?

Gubei line is an average line used to explore the trend and judge the market. The Gubi moving average is composed of two moving averages, one is short-term moving average, and the other is long-term moving average. The former represents short-term costs, and the latter represents long-term costs. Simply put, the short-term moving average is the cost of being a short-term person, and the long-term moving average is the cost of being a long-term person.

The short-term moving average is composed of 1, 3, 5, 8, 10, 12 and 15-day moving averages. This set of indicators reveals the behavior of short-term market speculators. The long-term moving average is composed of 30, 35, 40, 45, 50 and 60-day moving averages, which can reflect the behavior of long-term investors in the market.

The relationship between these two sets of indicators can tell investors more information-when they are close to each other, it shows that investors and speculators have reached a consensus on the value of foreign exchange products. When they are far away from each other, it shows that the understanding of value has diverged. Once the short-term indicators and the long-term indicators have a consistent change in the price direction at the same time, it is an important signal that a trading opportunity is coming.