Guppy multiple moving averages

TrendIntermediate

Daryl Guppy's multiple moving average splits a ribbon into a short group and a long group. The short group is a stand-in for traders, the long group for investors. A trend is readable when the two groups separate and each group is ordered from fast to slow. Compression of the ribbon is a warning that agreement has broken.

Not investment advice. Nothing here is a recommendation to buy or sell anything. Backtests and historical studies are not guarantees, and a rule that worked in one sample can fail in the next. Trading can lose money. Links are for education, not endorsements. Do your own research.

Rules
The usual trader group is EMA lengths 3, 5, 8, 10, 12, and 15. The investor group is 30, 35, 40, 45, 50, and 60. A long is considered when the trader group expands above a rising investor group. Exit when the trader group compresses back into the investor group or price closes through the slow ribbon. This is a state description, not a single cross of two lines.
Where AI fits
AI can score ribbon expansion, group separation, and ordering so the rule is not a visual judgment. It can also reject setups where the two groups are intermingled even if a fast average is rising. Those scores should be defined before looking at trade results.
Markets
Stocks and equity indexes. The idea was built for end-of-day equities.
Timeframes
Daily.
Risks
Twelve averages produce a chart that is easy to interpret after the fact. In a range the ribbons weave and the 'agreement' rule fires late or not at all. Copying the classic lengths onto a five-minute chart changes the strategy.

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