It is a method used to find buy trends, opportunities, and breakouts in the asset price. The name is given on the name of Australian trader Daryl Guppy.
It is calculated by combining the data of the groups of moving averages in the varying periods of the different asset classes. There can be a short or long-term group of MAs. If the short-term value declines; it indicates a downtrend in the specific asset class.
The disparity derived from the live market data can help to determine the degree of separation and it can be used to find strength in a specific area. If the difference is huge, it shows the current trend is strong. The crossover between the two shows reversals, a kind of weakening, or a period of consolidation.