What is GMMA?
The Guppy Multiple Moving Average draws twelve exponential moving averages of the same price in two groups. The short ribbon (3, 5, 8, 10, 12 and 15 bars) is drawn in blues and stands for short-term traders; the long ribbon (30, 35, 40, 45, 50 and 60 bars) is drawn in reds and stands for longer-term investors. No single line is meant to be read on its own. What matters is whether each ribbon is compressed or spread out, and where the two ribbons sit relative to each other.
GMMA shows how short-term and longer-term averages agree or disagree about direction. It does not measure trend strength in any fixed unit, give entry or exit levels, or predict where price goes next.
How to use GMMA
- Ribbon spread. A ribbon whose lines fan out and stay evenly spaced shows averages of different lengths moving the same way at different speeds, which is what a trending move looks like. A ribbon pinched into a tight bundle shows those averages agreeing on one level, which usually means a pause or a range.
- Short ribbon against long ribbon. The short ribbon above the long one means recent prices are above the longer-term averages; below it, the reverse. The short ribbon crossing through the long one is the change of order.
- The short ribbon fanning out through a flat long ribbon. This is the picture the indicator was designed to show. Short-term activity picks up and spreads while the longer-term group has not yet turned.
- The long ribbon turning. Because its lines are 30 to 60 bars, the long ribbon changes slope slowly. When it starts to spread in the same direction as the short ribbon, the longer horizon has joined the move.
These are ways to read the ribbons, not entry signals on their own.
Settings
| Setting | Default | What it changes |
|---|---|---|
| Source | Close | Which price all twelve averages use. Open, high, low and the averaged sources such as hl2 and hlc3 are also available. |
| Length 1 | 3 | Fastest line of the short ribbon. Minimum 1. |
| Length 2 | 5 | Second line of the short ribbon. Minimum 1. |
| Length 3 | 8 | Third line of the short ribbon. Minimum 1. |
| Length 4 | 10 | Fourth line of the short ribbon. Minimum 1. |
| Length 5 | 12 | Fifth line of the short ribbon. Minimum 1. |
| Length 6 | 15 | Slowest line of the short ribbon. Minimum 1. |
| Length 7 | 30 | Fastest line of the long ribbon. Minimum 1. |
| Length 8 | 35 | Second line of the long ribbon. Minimum 1. |
| Length 9 | 40 | Third line of the long ribbon. Minimum 1. |
| Length 10 | 45 | Fourth line of the long ribbon. Minimum 1. |
| Length 11 | 50 | Fifth line of the long ribbon. Minimum 1. |
| Length 12 | 60 | Slowest line of the long ribbon. Minimum 1. |
The first six lengths draw in blue and form the short ribbon, the last six draw in red and form the long ribbon, whatever values you give them.
Calculation
Every line is an ordinary exponential moving average of the chosen source. Only the length differs:
alpha = 2 / (length + 1)
EMA = alpha * price + (1 - alpha) * previous EMA
short ribbon: EMA 3, 5, 8, 10, 12, 15
long ribbon: EMA 30, 35, 40, 45, 50, 60Each average is started from the simple average of its first bars and settles from there, the same way as the standalone EMA. The shortest line appears after 3 bars and the slowest after 60, so on a short history the long ribbon starts later than the short one.
The two ribbons use two colour families rather than twelve distinct colours so that each reads as a group. The lines inside a ribbon get lighter as they get slower.
Limitations
- It lags. All twelve lines are built from past prices. The long ribbon in particular confirms a trend well after it has begun.
- Compression and spread are judged by eye. The indicator draws no threshold for when a ribbon counts as compressed, so two traders can read the same picture differently.
- Sideways markets tangle the ribbons. In a range the short ribbon weaves through the long one repeatedly and the order changes often without a trend following.
- It is busy. Twelve lines over the candles can hide price on a small screen or a dense timeframe.
- It is not a strategy. On its own it carries no risk management, sizing or exit.
Frequently asked questions
It is a set of twelve exponential moving averages split into two ribbons. Six short averages show the short-term view and six longer averages show the longer-term view. The ribbons are read by how compressed or spread they are and by which one sits on top.
Look at each ribbon as a group. A ribbon that fans out evenly shows a trend in its time horizon; a tight bundle shows agreement on one level, usually a pause. The short ribbon above the long one suggests recent prices are above the longer-term averages, and a short ribbon crossing through the long one marks the order changing.
Yes. The indicator has a Source input, default close, and twelve length inputs, Length 1 to Length 12, with defaults 3, 5, 8, 10, 12, 15, 30, 35, 40, 45, 50 and 60. Each length has a minimum of 1. Open the indicator's settings on the chart to change them.
No. Values on closed bars are not revised. The current candle's lines move while that candle is still live and settle when it closes, as with any moving average. Because each average needs a starting point, loading older history recalculates them and values near the start of the loaded range can shift.
Each average needs as many bars as its length before it is drawn. With the defaults the slowest line needs 60 bars, so on a short history the long ribbon appears after the short one.
Use the Add to chart button at the top of this page. It opens BTC/USDT on Binance in the Altrady Charts terminal with the built-in Guppy Multiple Moving Average already applied. On any other market, open the indicator picker on the chart and choose Guppy Multiple Moving Average from the Moving Average group.