The Guppy multiple moving average (GMMA) is a technical analysis tool that is used to identify the direction and strength of a market trend. Developed by Daryl Guppy, the GMMA is a collection of multiple moving averages that are plotted on a chart, with each moving average representing a different time frame.

The GMMA consists of two groups of moving averages: the short-term group and the long-term group. The short-term group is made up of six exponential moving averages (EMAs) that are based on short time frames, such as 5, 10, 15, 20, 25, and 30 days. The long-term group is made up of six EMAs that are based on longer time frames, such as 50, 100, 150, 200, 250, and 300 days.

One of the key advantages of the GMMA is that it can help traders identify the direction and strength of a trend. When the short-term and long-term EMAs are moving in the same direction and the short-term EMAs are above the long-term EMAs, this indicates that the trend is strong and likely to continue. On the other hand, if the short-term and long-term EMAs are moving in opposite directions or the short-term EMAs are below the long-term EMAs, this indicates that the trend is weak and may be reversing.

In conclusion, the Guppy multiple moving average (GMMA) is a valuable tool for traders who are looking to identify the direction and strength of a market trend. By using the GMMA in conjunction with other analysis techniques, traders can improve their chances of making profitable trades.