This document outlines a forex position trading system using the Guppy Multiple Moving Average (GMMA) indicators and the Stochastic Momentum Index (SMI) to identify trading signals. The system provides the following guidelines: 1. Look for good angle and separation between the red and blue GMMA lines as well as price moving away from the EMAs to determine trending vs. non-trending markets. 2. In trending markets, look for confirmation from the SMI, Stochastic, RSI and MACD indicators. 3. Use a tight trailing stop, moving the stop closer if the SMI turns red for a few days. The document provides examples

1. A Working Man’s
Forex Position Trading System

4. Do look at major news events

5. 100 -150 pip stop
2-3% risk

18. When the blue Guppy EMA cross
through the Reds, the trend is over

19. Notice how price bounces of the EMA levels. Between
these levels is no mans land. Better to trade when price
is moving away from the EMAs

21. Only use Stochastic in a trending market
Don’t buy at the bottom of Stochastic dip, wait for GEMA
to have good angle and separation

23. Can be used in all market types

24. Don’t short when SMI is at extreme -60 level

25. GEMA good angle and separation
Price moving away from EMA’s
Stochastic stays overbought
SMI continues to show the up move

27. GEMA in the Red so market is range
bound
Fast GEMA out of the Red so market is
trending
Daily and weekly SMI trending up

28. Range breakout

31. Extreme SMI reading.
Not the place to go long

32. Extreme SMI reading.
Not the place to go long

34. RSI above 50 = uptrend

36. Above two are too slow. Use trailing stops

37. SMI turns red for 2-3 days… move stop
closer
SMI turned red… move stop under lows

45. Price moving
away from EMA’s
Weekly and daily
SMI heading up
Look at Red GMMA’s. Not great angle and separation but are moving up. 2. Look at Blue GMMA’s. Are showing good angle and separation.
3. Price moving away from EMA’s. Blues have penetrated the reds so we are in a non trending market. 4. In non trending market look at SMI Daily
and weekly. Both are heading up. 5. Ignore Stochastic Indicator in non trending markets. 6. Look at weekly SMI – which is starting to turn up.
Weekly SMI
turning up

46. RSI above 50
7. Look at the confirming indicators – RSI above 50, MACD has good angle and separation. Everything on the daily chart is confirming the trade.
In non trending
market, good
angle and
separation on
MACD

47. Some angle &
separation on
blues
SMI starting
to go up (Teal
line is
irrelevant and
can come off)

48. Daily SMI
turning Red
for 2 bars.
Move stop
100 pips
under lows

50. Red GMMA’s. no angle or separation but are heading up. 2. Blue GMMA’s. Good angle and separation. 3. Price moving away from EMA’s. Blues
have penetrated the reds so we are in a non trending market. 4. SMI Daily and weekly, both are heading up. 5. Ignore Stochastic Indicator in non
trending markets.

51. 6. Confirming indicators – RSI above 50, MACD has good angle and separation. Everything on the daily chart is confirming the trade.

52. Trailing stop
Trailing stop Stopped out

54. Red GMMA’s. good angle or separation. 2. Blue GMMA’s. Good angle and separation. 3. Price moving away from EMA’s. In a trending
market. 4. SMI Daily and weekly, both are heading up. 5. Stochastic Indicator in blue and heading up.

56. 6. Confirming indicators – RSI above 50, MACD turning up. Everything on the daily chart is confirming the trade.

57. 1. Red GMMA’s. good angle or separation. 2. Blue GMMA’s. Good angle and separation. 3. Price moving away from EMA’s. In a trending
market. 4. SMI weekly heading up. 6. MACD is bullish

58. Trailing stop
Stopped out

60. 1. Red GMMA’s. angle or separation. 2. Blue GMMA’s. breaking into red. 3. Price moving toward EMA’s. Non trending market. 4. SMI Daily and
weekly, both are heading down. 5. Stochastic Indicator in red and heading down. No trade!

61. Price bounces off 200 EMA

63. 1. Red GMMA’s. good angle or separation. 2. Blue GMMA’s. heading down. 3. Price moving away from EMA’s. In a trending market. 4. SMI
heading down, weekly heading up. 5. Stochastic in the red and heading down

64. 6. Confirming indicators – RSI below 50, MACD turning down. No trade

66. 1. Red GMMA’s. good angle or separation. 2. Blue GMMA’s. heading down. 3. Price moving away from EMA’s. In a trending market. 4. SMI heading
up. 5. Stochastic in the blue and heading up

67. Price moves moves up

69. 1. Red GMMA’s. good angle or separation. 2. Blue GMMA’s. good angle or separation. 3. Price moving away from EMA’s. In a trending market. 4.
SMI & weekly (teal and black line) heading down. 5. Stochastic in the red and heading down

71. 6. Confirming indicators – RSI below 50, MACD turning down. Short trade signal

72. 1. Red GMMA’s. good angle or separation. 2. Blue GMMA’s. good angle or separation. 3. Price moving away from EMA’s. In a trending market. 4.
SMI weekly heading down. 5. MACD heading down 6. RSI below 50

73. Trailing stop
Trailing stop
Trailing stop Trailing stop
Stopped out