Guppy's Multiple Moving Average and Convergence/Divergence

[Nikolay.Gekht]

GMMA (Guppy's Multiple Moving Average) is 12 EMA lines:

1) Short (Fast) Group:
EMA(3), EMA(5), EMA(8), EMA(10), EMA(12), EMA(15)

1) Long (Slow) Group:
EMA(30), EMA(35), EMA(40), EMA(45), EMA(50), EMA(60)

GMMACD (Guppy's Multiple Moving Average Convergence/Divergence) is calculated as:
f = SUM(Fast EMA's)
s = SUM(Slow EMA's)
GMMACD = (s - f) / s * 100

GMMA.lua

Code: Select all

function Init()
    indicator:name("Guppy's Multiple Moving Average");
    indicator:requiredSource(core.Tick);
    indicator:type(core.Indicator);

    indicator.parameters:addColor("S_COLOR", "Color for the short EMA group", "", core.rgb(0, 0, 255));
    indicator.parameters:addColor("L_COLOR", "Color for the long EMA group", "", core.rgb(255, 0, 0));
end

local source = nil;
local EMAs = {};    -- an array of outputs

function CreateEMA(index, N, color, name)
    local label;
    -- line label
    label = "EMA" .. N;
    -- create the line
    EMAs[index] = instance:addStream(label, core.Line, name .. label, label,
                                     color, source:first() + N - 1);
end

function Prepare()
    source = instance.source;
    local name;

    -- set the indicator name (use the short name of our indicator: GMMA)
    name = profile:id() .. "(" .. source:name() .. ")";
    instance:name(name);

    CreateEMA(0, 3, instance.parameters.S_COLOR, name);
    CreateEMA(1, 5, instance.parameters.S_COLOR, name);
    CreateEMA(2, 8, instance.parameters.S_COLOR, name);
    CreateEMA(3, 10, instance.parameters.S_COLOR, name);
    CreateEMA(4, 12, instance.parameters.S_COLOR, name);
    CreateEMA(5, 15, instance.parameters.S_COLOR, name);

    CreateEMA(6, 30, instance.parameters.L_COLOR, name);
    CreateEMA(7, 35, instance.parameters.L_COLOR, name);
    CreateEMA(8, 40, instance.parameters.L_COLOR, name);
    CreateEMA(9, 45, instance.parameters.L_COLOR, name);
    CreateEMA(10, 50, instance.parameters.L_COLOR, name);
    CreateEMA(11, 60, instance.parameters.L_COLOR, name);
end

function CalcEMA(index, N, period)
    local first;

    first = source:first() + N - 1;
    if period < first then
       return ;
    elseif period == first then
       -- range: period - N + 1, period - N + 2, ..., period
       local range = core.rangeTo(period, N);
       EMAs[index][period] = core.avg(source, range);
    else
       local k;
       k = 2.0 / (N + 1.0);
       -- EMA - PRICE * K - PREV EMA * (1 - K)
       EMAs[index][period] = source[period] * k + EMAs[index][period - 1] * (1 - k);
    end
end

function Update(period)
    CalcEMA(0, 3, period);
    CalcEMA(1, 5, period);
    CalcEMA(2, 8, period);
    CalcEMA(3, 10, period);
    CalcEMA(4, 12, period);
    CalcEMA(5, 15, period);

    CalcEMA(6, 30, period);
    CalcEMA(7, 35, period);
    CalcEMA(8, 40, period);
    CalcEMA(9, 45, period);
    CalcEMA(10, 50, period);
    CalcEMA(11, 60, period);
end


GMMACD.lua

Code: Select all

function Init()
    indicator:name("Guppy's Multiple Moving Average Convergence/Divergence");
    indicator:requiredSource(core.Tick);
    indicator:type(core.Oscillator);

    indicator.parameters:addColor("COLOR", "Indicator's Color", "", core.rgb(255, 0, 0));
end

local source = nil;
local GMMA = nil;
local out = nil;
local first = nil;

function Prepare()
    source = instance.source;
    local name;
    -- set the indicator name (use the short name of our indicator: GMMA)
    name = profile:id() .. "(" .. source:name() .. ")";
    instance:name(name);
    GMMA = core.indicators:create("GMMA", source);
    first = GMMA:getStream(11):first();
    out = instance:addStream("H", core.Bar, name .. ".H", "H", instance.parameters.COLOR, first);
    out:addLevel(0);
end

function Update(period, mode)
    GMMA:update(mode);

    if (period >= first) then
        local f, s;
        f = GMMA:getStream(0)[period] + GMMA:getStream(1)[period] + GMMA:getStream(2)[period] +
            GMMA:getStream(3)[period] + GMMA:getStream(4)[period] + GMMA:getStream(5)[period];
        s = GMMA:getStream(6)[period] + GMMA:getStream(7)[period] + GMMA:getStream(9)[period] +
            GMMA:getStream(9)[period] + GMMA:getStream(10)[period] + GMMA:getStream(11)[period];
        out[period] = (f - s) / s * 100;
    end
end


Download:

GMMA.lua

(4 KiB) Downloaded 11090 times

GMMACD.lua

(1.32 KiB) Downloaded 9528 times

Note: you must have GMMA.lua installed in order to use GMMACD.lua

Version that allows you to define EMA periods.

CGMMA.lua

(5.25 KiB) Downloaded 6092 times

CGMMACD.lua

(2.19 KiB) Downloaded 5778 times

Note: you must have CGMMA.lua installed in order to use CGMMACD.lua

GMMACD Overlay.lua

(3.87 KiB) Downloaded 3751 times

[air2art]

hi any chance for a signal when the oscilaltor crossess above/below the 0 line
Thanks

[Apprentice]

The signal can be found here
http://fxcodebase.com/code/viewtopic.php?f=29&t=1281#p2442

[Jigit Jigit]

Thanks a lot for this one.
I've just started using GMMA and I already love it.

But I'm also a very unexperienced demo trader so...
Can someone, please, explain it to me how this GMMACD indicator works?

Cheers

[Nikolay.Gekht]

As said in the first post GMMACD is the indicator which shows relationship between fast and slow moving averages of GMMA indicator. When the indicator is above zero, the sum of fast MA's is above the sum of slow MAs, when it is below zero - the fast MA's are below slow MA's. The using of the "cross zero" signal is similar to use of two MA intersection. When it goes above zero - it indicates the uptrend. When it goes below zero - it indicates the downtrend. Because, like any MA indicator is a bit inertial (i.e. it shows signal with a lag), the trend must be long enough to be successfully detected.

[Apprentice]

GMMA Style Update

[Jigit Jigit]

Great job. Thank you.
Could you possibly add a line following the ends of the bars of the histogram - something like the slow CCI line in Woodies CCI indicator. It would make the indicator even more readable. Its colour could be specified by the user.

Cheers

[Apprentice]

Your request is added to the developmental cue.

[jackfx09]

Nice work!

Simple and effective indicator!

Could we please have the OPTION of changing the time frames for the EMA's used? Example:

2,5,10,17,25,50 for the short (FAST) and
50,100,200,350,500,1000 for the long (SLOW) groups


Thanks!
sjc

[Apprentice]

Your request is added to the developmental cue.