Guppy Multiple Moving Average – Short (GMMA Short) is Client Side VTL Indicator. It is a set of five shot term Exponential Moving Averages (EMAs) of periods 3, 7, 10, 12 and 15. GMMA Short is used to identify and trade the short term trend. Single moving average and price cross over strategies are associated with many choppy trades. GMMA short with five short term moving averages is able to eliminate such choppy cross over.

When all the moving averages are moving upward, a short term uptrend is in place and in a down trend, all the 5 moving averages moves downward. In trading ranges, the averages are placed close together, when the trend is strong, they depart from each other and slope in the direction of the trend. See the image attached.

Buy position can be opened when the moving averages turn upward and diverge from each other. Sell position can be opened when the GMMA short turns downward and diverge from each other.

This is a short term trading strategy. After opening a position, if the moving averages converge together, short term trend is losing momentum and positions can be closed. The zone formed by the GMMA act as short term support or resistance. This can be used to open pull back trades. When price comes back to the support zone formed by GMMA and again break above the support zone, Buy can be initiated. For a pullback Sell, price must test the resistance zone formed by the GMMA and again break below it. GMMA short is useful to short term trend following.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:\ProgramData\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts
• Restart your Client Terminal or Right Click on "Local VTL Scripts" Tree Node to find the script.