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.
I’ve been playing with the website’s template for a while. Gray and all the other cold colors seem to reflect the forex business perfectly 🙂
By the way, did you notice that we changed our logo? No more R2D2, now our image is the happy robot. It was an unanimous vote to get rid of the Star Wars robot, after we saw what Disney did to the movie.
No offense, dear Star Wars fans. The movie is still ok to watch, but it just doesn’t feel like Star Wars anymore 🙂
To make is easier for those who cannot afford to buy the Fluid EA but would like to try this strategy (minus the advanced money/ trade hedging management that the EA can do), we uploaded the template and made it available here. By default the EA considers buying only when the price is above the SMA200 and the EMA30 > EMA55. So in the picture above it will open short positions, as everything is the opposite.
The bar below is the Heiken Ashi on D1 timeframe – used to confirm the trend down (although the EA doesn’t take this into consideration). We also attached a short TO DO indicator (the instructions upper-left), just in case you forget the rules.
Once the trend in confirmed (above,downtrend) we will enter a trade when the nonlagMA color changes (above, from white to black – sell). Since you do not use the EA you will have to manage the trades by yourself – close the winning trades when the nonlagMA color changes back (black to white) and… manage losing trades as you wish (SL, hedge etc).
Watch the video and download the RobotFX Fluid template