what does the gmma tell you 
the degree of separation between the short and long term mas can be used as an indicator of trend strength if there s a wide separation then the prevailing trend is strong narrow separation or lines that are crisscrossings on the other hand indicates a weakening trend or a period of consolidation image by sabrina jiang investopedia 2021the crossover of the short and long term mas represent trend reversals if the short term crosses above the long term mas then a bullish reversal has occurred conversely if the short term mas cross below the longer term ones then a bearish reversal is occurring meanwhile when both groups of mas are moving horizontally or mostly moving sideways and heavily intertwined it means the asset lacks a price trend and therefore may not be a good candidate for trend trades these periods may be good for range trading though the gmma can be employed to identify changes in trends or gauge the strength of the current trend and are best used in conjunction with other technical indicators the indicator can also be used for trade signals when the short term group passes above the long term group of mas buy when the short term group passes below the longer term group sell these signals should be avoided when the price and the mas are moving sideways following a consolidation period watch for a crossover and separation when the lines start to separate this often means a breakout from the consolidation has occurred and a new trend could be underway during a strong uptrend when the short term mas move back toward the longer term mas but don t cross and then start to move back to the upside this is another opportunity to enter into long trades in the trending direction the same concept applies to downtrends for entering short trades the guppy multiple moving average gmma vs an exponential moving average ema the gmma is composed of 12 emas so it is essentially the same thing as an ema the guppy is a collection of emas that the creator believed helped isolate trades spot opportunities and warn about price reversals the multiple lines of the guppy help some traders see the strength or weakness in a trend better than if only using one or two emas limitations of the gmmathe main limitation of the guppy and the emas it is composed of is that it is a lagging indicator each ema represents the average price from the past it does not predict the future waiting for the averages to crossover can at times mean an entry or exit that is far too late as the price has already moved aggressively all mas are also prone to whipsaws this is when there is a crossover potentially resulting in a trade but the price doesn t move as expected and then the averages cross again resulting in a loss traders should use the gmma in conjunction with other technical indicators to maximize their odds of success for example traders might look at the relative strength index rsi to confirm whether a trend is getting top heavy and poised for a reversal or look at various chart patterns to determine other entry or exit points after a gmma crossover investopedia does not provide tax investment or financial services and advice the information is presented without consideration of the investment objectives risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors investing involves risk including the possible loss of principal 