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Re: Moving Average indicators for MT4

Banzai, Fri Apr 04, 2025 9:05 am

EURUSDM15_GuppyEnvelope.png
Guppy Envelope
(on/off button)

coder: Banzai
date: April 2, 2025

The Guppy Multiple Moving Average (GMMA) is a technical indicator developed by Daryl Guppy that helps traders analyze trends and potential reversals in forex, stocks, and other financial markets. It consists of two sets of exponential moving averages (EMAs)—one for short-term traders and one for long-term investors.

How GMMA Works

1. Short-term EMAs (6, 8, 10, 12, 15, 18)
  • Represent trading activity by short-term traders.
  • React quickly to price changes.
  • If they cross above the long-term EMAs, it suggests a strong uptrend.
2. Long-term EMAs (30, 35, 40, 45, 50, 60)
  • Represent institutional and long-term investors.
  • Move more slowly, showing the overall trend.
  • If they stay wide apart, it suggests strong momentum.
How to Use GMMA in Forex Trading
  • Bullish Signal: Short-term EMAs cross above the long-term EMAs with a wide separation.
  • Bearish Signal: Short-term EMAs cross below the long-term EMAs with a wide separation.
  • Trend Strength: The wider the gap between the two groups, the stronger the trend.
  • Reversal Signal: When short-term EMAs start crossing back through long-term EMAs.
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                  \\\///
                /  _  _  \
             ( |  (.)(.)  | )
.- - - - . OOOo - - () - - oOOO .- - - - .
|                ENVELOPE                |
|                indicator               |
|                   MT4                  |
. _ _ _ . ooooO_ _ _ _ _ _ _ _ _ _ _ _ _ .
          (    )          Oooo.
           \  (           (    )
            \__)           )  /
                          (__/

The Envelope Indicator in MetaTrader 4 (MT4) is a technical analysis tool that consists of two bands plotted around a moving average.
These bands are typically set a certain percentage above and below the moving average,
creating an "envelope" around the price action.
The envelope is used to identify overbought or oversold conditions in the market, as well as potential price breakouts.

How the Envelope Indicator Works
  • The envelope indicator uses a moving average (usually Simple Moving Average (SMA) or Exponential Moving Average (EMA)) as the central line.
  • Two parallel lines are plotted around the moving average at a fixed percentage or absolute distance above and below it.
    • Upper Envelope: Calculated as the moving average plus the set percentage or distance.
    • Lower Envelope: Calculated as the moving average minus the set percentage or distance.
How to Use the Envelope Indicator
  • Overbought/Oversold Levels: When the price touches or exceeds the upper band, it may indicate an overbought condition, suggesting a potential reversal or correction. Conversely, when the price touches or falls below the lower band, it may indicate an oversold condition, signaling a potential buying opportunity.
  • Trend Reversals: If the price moves outside of the envelope and then reverses, it can signal a potential trend reversal.
  • Price Breakouts: A breakout above the upper band or below the lower band might indicate the continuation of a strong trend.
Example Use Cases
  • Swing Trading: Traders might use the envelope to spot potential reversals or corrections within a range-bound market.
  • Trend Following: In trending markets, traders might use the envelope to identify when the price is overextended and potentially ready for a pullback.
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