The Guppy template is something I honestly don’t remember where it comes from. It is a candlestick template chart with 12 exponential moving averages (EMA) and can be useful to those still struggling to identify the trend.
Six moving averages are used to identify the main trend and other six to spot the swings in trend. Or you may also say that 6 EMA will get the trend for the investors - the long term traders, those maintaining the trend - and the other 6 EMA represent the day traders and the scalpers.
The main trend EMAs are from 55 to 30. The thick red line is 55 and thick green is 30; in between are 35, 40, 45, 50, thin red. As long as the 30 is above the 55 and the in-between moving averages are somehow parallel we have an up-trend. Opposite for the down-trend.
The other set of 6 ema are 3, 5, 8, 10, 12,15.
No comments:
Post a Comment