Psychological Effect in Stock Market

Sunday, May 4, 2008

Moving Average (MA) IV - GMMA

GMMA - Guppy Multiple Moving Average. Funny isn't it when someone fusioned something from basic to their customized needs they placed their name into the indicator. Anyway, I see it as a quite genius indicator and it is a good overview of short and long term investors view on that particular stock.

As name suggested, multiple moving average, it is combination of multiple short term MA and long term MA. What so nice about it? As I mentioned about the MA as support and resistance earlier, this indicator gives you a good overview of the support and resistance. Refer to the chart below.

The chart shows there are about 3 times this stock failed to turn bullish (indicated by red arrow). Finally the recent outlook turns bullish as suggested by:

  1. Long term players finally give up the resistance (short term MA crossover long term MA).
  2. Both short and long term players are positive on this stock (price crossover short term MA then continue to crossover long term MA).
Few things to note. Resistance of 70cents neckline needs some time to consolidate and price is slightly below 200 days MA (resistance). However, this is out of today's topic because it is about GMMA.

As for Construction counters, I pulled out for your exercise. If you like the articles, please tell your friends. If you have any question, feel free to post in CNA forum. I didn't open comment function because I don't like to be trolled.

All articles published in this website is purely the author's personal view on the psychological of stock market. Please do your homework properly before you invest. The author of this website shall not responsible for any losses in your investment. (Even don't have this clause the author also knows that no legal issue shall be charged against him for your losses in investment). The articles displayed here are not allowed to be published in other media other than this website. Any unauthorization usage of the chart will causes the author to make this website to private view only.