Guppy MMA Oscillator from Short and Long EMAs

Summary

The Guppy MMA oscillator compares two groups of exponential moving averages: a short-term group and a long-term group. The short group uses six faster averages, while the long group uses six slower averages. Their summed difference is smoothed with another exponential average to create an oscillator analogous in broad form to MACD.

The described signal is a zero-line crossover: a move above zero is treated as bullish, and a move below zero as bearish. The indicator also offers a percentage mode, which expresses the difference relative to the long-average group rather than as a raw price difference. This can make readings more comparable across instruments with different price levels. The document provides an indicator definition and code but no market examples, backtest, performance evidence, or rules for exits and risk management, so the crossover should be understood as a proposed signal rather than a demonstrated trading strategy.

Key ideas

• The indicator compares sums of six faster exponential moving averages with six slower ones.
• It smooths the difference between the two groups to form an oscillator.
• A cross above zero is presented as bullish, while a cross below zero is presented as bearish.
• The optional percentage mode scales the group difference relative to the long-term average group.
• The document provides no testing evidence or complete trade-management rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.