CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Guppy multiple moving averages

Daryl Guppy is an Australian trader who developed a “rainbow” of multiple moving averages, called the Guppy Multiple Moving Averages (GMMA).

The GMMA indicator consists of three groups of exponential moving averages (EMA). There are two short term groups and a long term group. The first two short term group consists of the EMA3 (3-period EMA), the EMA5 and the EMA8. The second short term group consists of the EMA10, the EMA12 and the EMA15. The long term group consists of the EMA30, the EMA35, the EMA 40, the EMA45, the EMA50 and the EMA60.

The purpose of this indicator is not to generate entry or exit points. The purpose of the indicator is to make traders 'visually understand' the general concept of a short term trend versus a long term trend. Hence the indicator is less useful when there is no trend.

Australian trader Daryl Guppy's rainbow indicator called Guppy Exponential Moving Average Indicator.