not using Ninja but here's my version of GMMA
The official GMMA periods are
3 5 8 10 12 15 (first group)(the fast group)
30 35 40 45 50 60(second group)(the slow group)
they are all exponential moving averages(EMA) based on close
After using them for a long time I decided to keep only the second group of slower EMA(30 35 40 45 50 60).
Most of the time the action of the fast group of EMA is so closely related to the
price action, you might as well just use the price action by itself. And sometime with all the lines of the fast EMA it gets confusing(that is my conclusion but your are free to use them)
For the change in color: I use RISING/FALLING. I did use cross-over but it was more confusing(for me) and I figured out prices have to rise/fall in order to cross-over anyway, but it is a personal choice.
As well I like to have the 60 EMA plotted differently: wider and or a different color and or a different way to show it,
in my case I use dots. That is my reference point. And it is very easy to see at a glance.
The 60 EMA will dictate if I look the enter LONGs only(if rising) or SHORTs only(if falling)
I do not trade against the 60EMA. Once again my choice...got burnt too many times.
Instead of the fast group of EMA(3 5 8 10 12 15) I am using 2 weighted moving averages.
Weighted
moving average period 8 based on HIGHS(thick fuchsia line when falling)
Weighted moving average period 8 based on LOWS(thick yellow line when rising)
When using a short period moving average(WMA) based on close or (hi+lo)/2 or (H+L+C)/3 the line is pretty much centered in the price action when not moving strongly one way or the other.
By using a calculation based on LOWs and on HIGHs you see the price separating from the tick line 8WMA as soon as there is directional
bias.
Up trend: the prices will separate from the 8WMA lows (tick yellow line) and in a strong up trend price action will be above 8WMA highs.
Down trend: the prices will separate from the 8WMA highs (tick fuchsia line) and in a strong down trend price action will be below the 8WMA lows.
For me, the two 8WMA have more impact and give me another tool to quickly see a trend and judge how strong the trend is.
Let me know what you think!
