GMMA has two sets of EMA combinations, short-term and long-term.

Average (3, 5, 8, 10, 12, 15) and average (30, 35, 40, 45, 50, 60).

In fact, the trading strategy of Gubi trading system is simple: look for rising stocks to buy, and then hold them until they start to fall. This strategy sounds simple, but it needs a lot of skills to implement. Guppy believes that the stock price chart can capture the difference between price and value, and the price can help to understand the mood of the investing public, which is often expressed in a certain way, which is very helpful for understanding and utilizing price fluctuations, because the chart shows the possibility of future price movements. When the public starts to behave in a certain way, they know that they are likely to continue this behavior, which contains the meaning of "trend" and "formal transaction"

It is understood that the basis of all trading behaviors of Gubi is risk management, so that when the loss is small, it can stop loss in time and retain profits throughout the trend. Trading is based on a full understanding of the nature of the "trend", using a self-created index-Guppy Multiple Moving Average (GMMA).

"GMMA can track the behavior of investors and speculators. Once we can analyze what these two groups are doing, we can make a better trading plan. This means that when the upward trend of the market continues, even if the stock price falls briefly, we will choose to stick to it; At the same time, it can also identify short-term transactions in order to fast forward and fast out and make a profit. " This is how Gubi described it. Specifically, GMMA uses two sets of exponential moving averages. I call it "short-term group", which is composed of 3, 5, 8, 10, 12 and 15 daily averages. This set of indicators reveals the behavior of short-term speculators in the market. "Long-term group" consists of 30, 35, 40, 45, 50 and 60-day moving averages, which can reflect the behavior of long-term investors in the market. The relationship between these two sets of indicators can tell us more information-when they are close to each other, it shows that investors and speculators have reached a * * * understanding of the stock value; When the two are far apart, it shows that there are differences in understanding of value. Once the short-term indicators and long-term indicators show the same price direction change at the same time, it is an important signal that trading opportunities are coming.

It is worth noting that Guppytraders.com, owned by Guppy, has two joint ventures with NextView in Singapore and Pristine in the United States, and cooperates with three internationally renowned financial software companies: Reuters, Metastock and Omnitrader. Among them, Reuters is the world's largest price data company outside China, and most of the financial data in the computers of brokers and fund managers come from the database in Reuters. Omnitrader has developed the world's third-ranked charting program, which is used by senior professionals who are among the best in developing and testing trading systems. In the international financial market, when professional traders use charts of stocks, futures and bonds, Reuters generally provides price data and Metastock provides charts. Guppy's GMMA index is included in Metastock, so many professional traders in the world understand and apply GMMA, which is an independently confirmed world standard indicator. Because Omnitrader needs an advanced trading system, only a few indicators of world-class analysts are included, including GMMA, and Gubi is the only non-American partner.

When talking about the reasons why China investors lost money on "value stocks", Gubi thought that they didn't sell these stocks in time when the upward trend turned to the downward trend. Even if they lose money, they still think these stocks are valuable. Guppy said: "I know it is difficult for me to choose the so-called good' value stocks' because the real information of the company is always difficult to obtain: the disclosed information is often unreliable and the company often tells the truth. This situation is not unique to China. I found similar problems when I studied mature markets such as the United States and Australia. "

Peacock countdown line

The penultimate line of the ancient pen;

Explain how to draw the Gubi reciprocal line with the Shanghai Composite Index. First, we find the lowest point of the downtrend line of the Shanghai Composite Index (the candle line marked 1), which is the first "important candle line". Then move left along this candle line until you meet another candle line with the highest price higher than the candle line 1, which is the second important candle line we are looking for. Then move left along this candle line until you meet the next "highest-priced candle line", which is the third "important candle line". At this point, draw a straight line along the top of the third candle line, which is the "guppy reciprocal line". The stock index must close above this point to confirm the establishment of a new upward trend. There is no time limit when it will take effect.

Advantages of "guppy reciprocity line":

In technical analysis, the Cooper's reciprocal line has two advantages: first, it is a means to prove the authenticity of the new upward trend; Second, investors can be guaranteed to act first. Many investors use other turn signals, which are slower than the "countdown line", so they will delay the fighters.

Instructions for use of guppy reciprocity line:

The trading significance of Guppy reciprocal line;

1. When the downward trend turns to the upward trend, investors are prone to make mistakes. Sometimes, even if the stock index closes above the downtrend line, it will be a wrong turning point signal. The way to avoid false signals is to use some confirmation indicators of trend turning.

2. Before an athlete starts, he usually needs three instructions: "Get ready, get in position and run!"

(The principle of guppy reciprocal line is similar. The lowest point of the downward trend is the signal of "preparation"; )

1.) When the index closes above the downtrend line, it is a "in place" signal;

2.) When the index closes above the Guppy countdown line, it is a signal to "run"-then investors can start buying stocks.

The use of guppy reciprocity line:

It is a reliable indicator to judge the inflection point of the trend. It has three purposes:

The first one is used as a confirmation signal when the downward trend turns into a new upward trend;

The second is to act as a stop loss signal after the transaction occurs;

Thirdly, when the upward trend is about to turn into a new downward trend, it is used as an appearance signal to obtain the best profit.

Conditions for the countdown entry line of guppies:

Guppy's countdown entry line is drawn like this: from the lowest point of the recent downward trend, count back three "important" bars (or candle lines). The so-called "important" bar line means that its highest price is higher than the highest price of the next one.

In the continuous downward trend, as a short-term resistance line, Gubi's countdown entry line can also be obtained by counting down two "important" bars and then drawing a horizontal line to the right. The index closed at this resistance line, which proves that the downward trend has been changed.

Therefore, the best reception signal is obtained. It should be noted that as long as the index hits a new low, the entry line of Gubi countdown needs to be recalculated. If we want to draw the conclusion that the downward trend turns into an upward trend, we must meet the conditions for the stock index to close at the countdown line. Once the stock index "jumps over" this mark, it means that the turning point of the trend is very strong.

Conditions of guppy reciprocal stop loss line:

When trading, the Guppy reciprocal stop loss line can be used to stop losses and protect the principal. Unlike Guppy's countdown entry line, the starting point of the stop-loss line is not the lowest point of the downward trend, but the latest highest point of the new upward trend. Starting from the highest point of the bar line, count back three "important" bar lines (or candle lines). The so-called "important" lever line here requires the lowest price to be lower than the next one.

The Guppy reciprocal stop loss line can be used as a short-term support line in the new upward trend. Its drawing method is to count two "important" bar lines first and then draw a straight line horizontally to the right. The stock index closed below this line, indicating that the upward trend failed. Therefore, we can use the Guppy reciprocal stop loss line to judge the best appearance position. Investors should be able to ensure that their funds will not lose more than 2% after entering the market according to the reciprocal stop loss line of care ratio.

Conditions of guppy reciprocal profit line:

When the stock index runs above our admission signal, investors begin to make profits. At this time, the Cooper's reciprocal line can also be used as a departure signal to protect profits. We start with the latest highest price in the rising trend, count back two bar lines with the lowest price lower than the bottom, and then draw a horizontal line to the right, which forms a short-term support line. Once the index closes below the Guppy reciprocal profit line, it indicates that the upward trend will turn into a new downward trend.

If the stock index remains above the Guppy reciprocal profit line, trading can continue. Once it falls below, the transaction should end. Therefore, guppy's reciprocal profit line is used to preserve profits.

Note: investors are usually the last three "important" bars (or candle lines), not three days.

Conclusion:

Therefore, in general, Cooper reciprocal line is a confirmation signal, which can not only help investors to judge the real trend change, but also be used to stop loss and take profit.