A Tactical Swing Trading Strategy Using The Guppy - VectorVest
A Tactical Swing Trading StrategyUsing The Guppy
What We Will CoverA Tactical TradingStrategy Using TheGuppy1. What Is Guppy Multiple MovingAverage Trading System?2. How to Add the Guppy MultipleMoving Averages to Your Graphs.3. A Complete Tactical TradingStrategy for High ProbabilityEntries.
The Guppy SystemWhat is the Guppy?The Guppy indicator was created byDaryl Guppy, an Australian financialwriter and author.It comprises Multiple Moving Averagebands representing two types ofinvestors, short-term traders and longterm investors.He called his indicator the GuppyMultiple Moving Averages or GMMA.
The Guppy SystemWhy I Love The Guppy Clearer Trends. Decisions are based on just onesimple, visual graph pattern, so you can focus onthe best stocks that are truly in play. Safer Entries. Guppy practically forces you towait for the best trade setups – Traders andInvestors must be in agreement. Faster, Higher Returns. Guppy is designed todeliver higher returns in shorter periods of time –a few days or a few weeks. Maximize Your Runners. Guppy graphs filter outthe noise so you can let your winners run safelywith a pre-set, line-in-the sand SELL Rule based onMoving Averages.
The Guppy SystemWho Is This Type of Swing Trading For?A Tactical TradingStrategy Using TheGuppy Traders still working a regular day job. Traders who don’t want to be tied to acomputer all day. Traders with smaller margin accounts whowant to accelerate their retirement portfolios. Traders who prefer a slower mindset thanday-trading but are seeking faster action andquicker results than buy and hold.
A Trend Following SystemGain a directional edge in the market:A Tactical TradingStrategy Using TheGuppy“Wall Street ‘experts’ consistently say youcan't time the market. But VectorVest timesthe market and we do it quite well, thank you.We don't predict the market. We track andanalyze it. We are trend followers. We decidewhat to do based on fact, not guesswork.”- Dr. Bart DiLiddo, VectorVest Founder
The Guppy SystemKey ConceptA Tactical TradingStrategy Using TheGuppy“Multiple Moving Averages captures thecharacter of the trend and therelationship between two dominantforces in the market – traders andinvestors.”-Daryl Guppy, Creator of GuppyMultiple Moving Averages andAuthor of Trend Trading
The Guppy SystemWhat is the GMMA Indicator?A Tactical TradingStrategy Using TheGuppyTwo Moving Average bands are plottedon the price graph. A band of six fast Moving Averagesrepresents the price behaviour of short-termtraders. A band of six slow Moving Averagesrepresents the price behaviour of long-terminvestors.
The Guppy SystemKey ConceptA Tactical TradingStrategy Using TheGuppyDaryl Guppy’s logic behind the use of GMMAfrom his book titled, Trend Following: Traders always lead the change in trend. Their buyingpushes up prices in anticipation of a trend change.The trend only survives if other buyers come into themarket (long-term Investors). Short term (fast) movingaverages are used to track the traders’ reasonedactivity: 3-5-8-10-12-15 The Investor takes more time to recognize the changein a trend, but eventually follows the lead set by thetraders. Long-term moving averages (slow) are used totrack the investors’ reasoned activity: 30-35-40-45-5060
The Guppy SystemOur Graph SetupA Tactical TradingStrategy Using TheGuppy Price – we start with price off to filter out thenoise, then toggle it on to confirm price andany candlestick patterns The Short-term (fast) exponential movingaverages (EMA’s) are: 3-5-8-10-12-15 The Long-term (slow) exponential movingaverages (EMA’s) are: 30-35-40-45-50-60 RT – 40-day Simple Moving Average Volume and 50 MA of Volume; breakouts onhigh volume give fewer false signals EPS – toggle on and off; trade only the best
What Is The Guppy System?
The Guppy SystemWhy Multiple Moving Averages?A Tactical TradingStrategy Using TheGuppyGives us precise information about price trendand the relationship between Traders andInvestors.Why the 40-Moving Average of RT?Confirms the direction, momentum andmagnitude of price moves. Avoid false signals.Why Earnings Per Share?Price follows earnings. VectorVest graphsallow us to see a forward-looking EPS trend.
Trading GuidanceA Tactical TradingStrategy Using TheGuppy Trade in the direction of the Traders whenthe fast EMAs have crossed above the slowInvestors EMAs. When Traders bands narrow and compress,prepare for a change in trend. The slow Investors band confirms the overalltrend direction. Watch for contractions ofthe Traders band moving into and above theInvestors band for entries or adding shares. Wait for additional confirmation with rising40-MA of RT, EPS, and Volume.
This is your setup.The Guppy System
Buy and Sell RulesBuy RulesA Tactical TradingStrategy Using TheGuppy1.The Trader band has crossed above the Investorband, and they have started to separate and fan out.2.The 40-MA of RT is rising.3.The Market is in an uptrend ie. DEW.Sell Rules1.Early - Sell when the Trader EMAs have squeezedtogether and started to fall, and if there is noseparation or “gap” between the Trader and Investorbands, especially when the 40-MA of RT is falling.2.Line in the Sand – Always Sell when one or more ofthe Trader EMAs have crossed below the InvestorEMAs.
The Guppy System
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Taking profits early.Buy – 5/18/20Sell – 6/12/20Gain 4.03% / 58.86%The Guppy System
Holding through thedips.Buy – 5/18/20Sell – 8/26/20Gain 17.29% / 63.16%The Guppy System
What if you missed thefirst Buying opportunity?Buy – 6/17/20Sell – 8/26/20Gain 6.27% / 32.70%The Guppy System
Taking profits early.The Guppy SystemBuy – 11/06/20Sell – 12/23/20Gain 19.14% / 148.75%
Take profits early toremove your risk, thenlet your profits run.The Guppy SystemBuy – 11/06/20Sell – 3/08/20Gain 49.84% / 149.20%
Missed the first one, Buyon the dip. Sell early.The Guppy SystemBuy – 01/05/21Sell – 01/27/21Gain 10.02% / 166.39%
To Short, look for theopposite setup.The Guppy System
VectorVest’s Buy rating can be yourtrigger, or wait for confirmation ofMA of RT to start rising.The Guppy System
The Guppy System
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The SetupThe SetupA Tactical TradingStrategy Using TheGuppyThe hardest and most time-consuming partof swing trading is to find the right stockswith the correct setup early in the trendchange.Three Ways VectorVest makes it easier:1. Stock Viewer – Allows you to rank, sortand analyze the best candidates quicklyand easily.2. WatchList Viewer – Prebuilt premiumWatchlists for top stocks in top groups.3. UniSearch – A powerful search engineto pinpoint potential candidates withthe right setup.Let’s focus on UniSearch.
The SetupThe Setup*Requires RealTime Subscription or ProTrader PremiumAdd-In for the technical studies**Adjust Stock AvgVol level to suit the market in whichyou trade
ThankYou For Watching!Questions?Need Help?Questions? Need help? Contact Us.A Tactical TradingStrategy Using TheGuppy1-888-658-7638stan.heller@vectorvest.ca
A Tactical Trading Strategy Using The Guppy. The Guppy System. Who Is This Type of Swing Trading For? Traders still working a regular day job. Traders who don't want to be tied to a computer all day. Traders with smaller margin accounts who want to accelerate their retirement portfolios. Traders who prefer a slower mindset than
It takes new lows to confirm Swing Highs and new highs to confirm Swing Lows. Trading these back and forth motions in the market is swing trading. Once you learn to identify swing highs and swing lows, you can begin to anticipate what it will take to make the next price extreme a swing high or low and how to use that in your trading. 7
Trading Stocks With Swing Trading Five Swing Trading Strategies For Stocks 1. Fibonacci Retracement 2. Support And Resistance Triggers 3. Channel Trading 4. 10-and 20-day SMA 5. MACD Crossover Chapter Twenty Four Short Swing Trading With ETF'S Chapter Twenty Five Dynamic And Static Risk Management Chapter Twenty Six Success Stories Kyle Dennis
make money in both trending and range bound markets. Swing Trading is a classic strategy that involves holding stocks for a short period of time, typically between a few days to a few weeks. Unlike day trading, Swing Trading is independent of time - nevertheless, some Swing Traders will exit a slow-moving position and move onto
A Practical Guide to Swing Trading by Larry Swing Introduction This book is a simple, practical guide to swing trading.For years I have been reading books and exploring web sites that are dedicated to swing trading.
Swing trading allows you to accumulate small gains weekly, ultimately making money through a disciplined, low-risk trading approach. While swing trading is not for everyone, this book will help you determine if swing trading is right for you. It provides a treasure map to the pot of gold which is found at the end of the rainbow.
Swing trading allows you to accumulate small gains weekly, ultimately making money through a disciplined, low-risk trading approach. While swing trading is not for everyone, this book will help you determine if swing trading is right for you. It provides a treasure map to the pot of gold which is found at the end of the rainbow.
Swing trading allows you to accumulate small gains weekly, ultimately making money through a disciplined, low-risk trading approach. While swing trading is not for everyone, this book will help you determine if swing trading is right for you. It provides a treasure map to the pot of gold which is found at the end of the rainbow.
Swing trading is not intraday day trading, moving quickly in and out. It does not involve taking fast-paced breakout trades where you are looking for quick wins. Swing trading is about profiting from the next swing in the market higher or lower. This can take time to play out whether on the smaller or higher time frames. Yes, sometimes this will happen quite fast. If you want a strategy where .
