GKFXPrimeJiekai Finance: A Sharp Tool for Foreign Exchange Trend Trading---knowGMMAGubi Moving Average (Part 1)

What is?GMMAGuppy's moving average?

GMMAThe full name of the moving average is the Guppy moving average, which is composed of12The root moving average is used to measure the short-term and long-term trends of a specific time period. Widely used inforeign exchangefuturesTrading in stocks and precious metals. The following figure shows the Guppy moving average atGBP/USDApplication examples of.

（GBP/USD AndGMMAMoving averageGKFXPrimeProduced by Jiekai Finance)

GMMAGuppy's moving average12rootEMAThe moving average line is composed of the following parameters:3、5、8、10、12、15、30、35、40、45、50、60. Add the above moving average parameters toMT4Among them, it will be found that it can be divided into two groups of moving averages - the long-term group moving average and the short-term group moving average. In this article, blue is used as the short-term group moving average, and red is used as the long-term group moving average.

GMMAThe difference between the Gubi moving average and the regular average

In technical analysis, the average moving average is approximately50、100、200Using isoparameters as the period of the moving average, or usinggoldSplit sequence（21 34 55 89 144...) as a moving average parameter. However, in practical applications, it is often found that prices may cross the moving average, but the overall trend has not changed, missing out on some valuable entry prices. As shown in the following figure,USD/JPYThirty minute chart using34The moving average, you will find that prices have broken through the moving average three times, which was originally a bullish signal, but the trend has repeatedly proven that the downward trend has not changed. Although Zhuge Liang said that after the incident, missing the range of consolidation after such a decline means missing the opportunity to enter or increase positions.

（USD/JPY And34Periodic moving average, represented byGKFXPrimeProduced by Jiekai Finance)

Let's loadGMMACompare the moving average to see if the same price point sends different signals.

（USD/JPYAndGMMAMoving averageGKFXPrimeProduced by Jiekai Finance)

At this point, all three points are below the long-term group of the Guppy's moving average, and the long-term group moving average continues to depict a downward trend like flowing water. When the short-term group moving average approaches the long-term group moving average, it just sends out a signal of retreat in the downward trend. Not only that, the width of the long-term moving average can also measure the strength of the trend. The wider the long-term group, the clearer the long-term trend.

Correct understandingGMMAGubi moving average

GMMAThe Gubi moving average helps to avoid some erroneous signals and disadvantages of single or double moving average systems. Suitable for trend trading that meets the definition, providing the location of withdrawal and potential stop loss positions. howeverGMMAThe moving average is not omnipotent, only by mastering more refined usage techniques can one proficiently use it in the foreign exchange market. Welcome to followGKFXPrimeNext article of Jiekai Finance《GMMATips for using the Gubi moving average.

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