Daryl Guppy uses a set of two EMA's to guage a trend and strength of trend. MMA stands for Multiple Moving Averages.
Short Term EMA
3 5 8 10 12 15
Long Term EMA
30 35 40 45 50 60
Using that you can create two scans to find stocks in confirmed uptrend or downtrend
Guppy MMA uptrend scan
XAVGC3 > XAVGC30 AND XAVGC5 > XAVGC30 AND XAVGC7 > XAVGC30 AND XAVGC10 > XAVGC30 AND XAVGC12 > XAVGC30 AND XAVGC15 > XAVGC30 AND XAVGC3 > XAVGC35 AND XAVGC5 > XAVGC35 AND XAVGC7 > XAVGC35 AND XAVGC10 > XAVGC35 AND XAVGC12 > XAVGC35 AND XAVGC15 > XAVGC35 AND XAVGC3 > XAVGC40 AND XAVGC5 > XAVGC40 AND XAVGC7 > XAVGC40 AND XAVGC10 > XAVGC40 AND XAVGC12 > XAVGC40 AND XAVGC15 > XAVGC40 AND XAVGC3 > XAVGC45 AND XAVGC5 > XAVGC45 AND XAVGC7 > XAVGC45 AND XAVGC10 > XAVGC45 AND XAVGC12 > XAVGC45 AND XAVGC15 > XAVGC45 AND XAVGC3 > XAVGC50 AND XAVGC5 > XAVGC50 AND XAVGC7 > XAVGC50 AND XAVGC10 > XAVGC50 AND XAVGC12 > XAVGC50 AND XAVGC15 > XAVGC50 AND XAVGC3 > XAVGC60 AND XAVGC5 > XAVGC60 AND XAVGC7 > XAVGC60 AND XAVGC10 > XAVGC60 AND XAVGC12 > XAVGC60 AND XAVGC15 > XAVGC60
Guppy MMA Downtrend Scan
You can create a similar scan for downtrend.
How can you use these scans to find market health? Look at % of stocks in uptrend and % of stocks in downtrend.
As of yesterday 30.35% of stocks in Worden universe were in uptrend.
As of yesterday 34.37% of stocks were in downtrend.
On 12 the June 71.33% of stocks were in uptrend and only 10.84% in downtrend. In last one month there has been a sharp correction which is eflected in those breadth numbers.
1 comment:
I love the Guppy view. Each week I review the daily guppy chart on my blog. I also look at the average slopes of the fast and slow moving averages as another means to judge market trends.
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