Thread: Guppy – vertexfx indicator

Guppy is a powerful VertexFX client side VTL indicator in the family of trend-following indicators that provides precise BUY and SELL signals for trading. Guppy indicator is comprised of 6 Moving Averages with periods ranging from very fast (e.g. 3 bars) to medium (e.g. 15 bars) to capture the trend over a wider spectrum. We select this combination because three days is about half a trading week. Five days is one trading week. Eight days is about a week and a half.
In the first step we calculate the six moving averages for the specified Moving Average type (MA_TYPE) and specified price field (PRICE_FIELD).
When the candle closes above all the six Moving Averages, a BUY signal is triggered, whereas if the price closes below all the six Moving Averages, a SELL signal is triggered.
The concept behind the Guppy indicator is that when a trend is formed it must be confirmed over a range of moving averages. This eliminates whipsaws, sideways movements and noise. When all the moving averages are moving in one direction, and the price overtakes the moving average in the direction of the trend it implies that the trend is strong and confirmed. On the contrary, when the trend is not strong, the slower Moving Averages do not confirm with the faster Moving Averages, and therefore the false trend signals are eliminiated.
Buy: Place Buy position when Guppy indicator Buy (BLUE) arrow is displayed at candle close. Do not place Buy

position if candle has gap up opening.

Sell: Place Sell position when Guppy indicator Sell (RED) arrow is displayed at candle close. Do not place Sell trade if candle has gap down opening.

Inputs :
1) PERIOD_1 - The first Moving Average period.
2) PERIOD_2 - The second Moving Average period.
3) PERIOD_3 - The third Moving Average period.
4) PERIOD_4 - The fourth Moving Average period.
5) PERIOD_5 - The fifth Moving Average period.
6) PERIOD_6 - The sixth Moving Average period.
7) MA_MODE - The method for calculating the Moving Average. SMA = 0, EMA = 1.
8) PRICE_FIELD - The price field used to calculate the Guppy Moving Averages. Close = 0, Open = 1, High = 2, Low = 3, Median = 4, Typical = 5, Weighted = 6.

http://realtimedata.in/2016/11/29/gu...xfx-indicator/