Trend Trading Software
Trend trading software can be used to the trader’s great advantage. Those who invest in trends use software for back testing and for helping them to calculate the probabilities that certain trends are in place. The technical indicators and formula like the GMMA and the EMA as well as the A-D Line can all be more finely tuned-in through the use of software.
Trend Trading System – GMMA – EMA
Getting involved in trend trading requires that you have discipline. You never want to trend trade–or in fact, do any kind of investing–on emotions. You don’t want to be a pawn of greed and fear like the masses of traders are. So, the way to take emotions out of the picture is to have a system in place that you know you will use before you begin trading.
One of the most often used trend trading systems out there is the GMMA, or the Guppy Multiple Moving Average. With the GMMA, the trader puts together two different groups of moving averages that have different time periods.
One of these groups is quite often used by traders with a short-term horizon. The number of days in their time horizon is, most of the time, one of the following: three, five, eight, 10, 12, or 15. For those who are involved with long-term investing as trend traders, they use time frames that consist of 30, 35, 40, 45, 50, or 60 days.
