GMMA / MA Ribbon
By LuxAlgoApr 13, 2020
The GMMA / MA Ribbon plots Daryl Guppy's Multiple Moving Average as a ribbon of twelve exponential moving averages in two colored groups: a short-term set with lengths 3, 5, 8, 10, 12, and 15, and a long-term set with lengths 30, 35, 40, 45, 50, and 60. The premise is behavioral — the short group tracks fast-trading money, the long group the slower money underwriting the trend — and the information lives in how the two groups behave, not in any single line.
This is the standard Guppy construction using the classic length sets, each group drawn in its own color directly on the price chart.
How to Trade the GMMA / MA Ribbon?
- Both groups wide and parallel: a trend in good health — slower money committed, faster money following.
- Short group folding back into a well-spread long group: a pullback; the classic continuation entry is the short group bouncing there and fanning out again.
- Long group tightening: conviction behind the trend is thinning — treat it as fragile.
- Both groups intertwined: a range — GMMA readings carry the least weight; the textbook response is standing aside.
- One group crossing fully through the other: the late, structural confirmation that the trend has changed; the build averages each group and fires Bullish and Bearish Ribbon Cross alerts when the short-term average crosses the long-term.
Expansion confirms and compression warns; the most common GMMA mistake is forcing trades in the intertwined state, when the ribbon shows no edge.
GMMA / MA Ribbon Settings
- Short-Term EMAs / Long-Term EMAs: the build's two inputs set each group's color — six short-term EMAs tracking trader activity, six long-term EMAs tracking investor activity. The twelve lengths are fixed to Guppy's published sets by design, so charts read identically across users.
Frequently Asked Questions
Why are the EMA lengths fixed?
Because the GMMA is defined by its length sets: 3 through 15 for the trader group and 30 through 60 for the investor group are the values Guppy built the method's readings around. Changing them would redefine the spacing that compression and expansion are judged against, so the build keeps them fixed.
What does the ribbon add over a two-line crossover?
A two-line cross gives one binary event. The GMMA's twelve lines expose what a pair hides — how unanimous each group is, whether separation is widening or decaying, how the short group behaves on returns to the long one.
What timeframes suit the GMMA?
The construction is timeframe-agnostic — it works wherever there are enough bars for the 60-period EMA to settle. Guppy developed it on daily charts; on fast intraday charts the behavioral story loosens though the compression-expansion mechanics still apply.
Free indicator
Get free access to this indicator on the platforms below.
The Library is free. Quant makes it yours.
Pull any concept or indicator into Quant: rebuild it, retune it, or turn it into a backtested strategy of your own.
