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McGinley Dynamic Technical Indicator

Developed by John McGinley

 

The McGinley Dynamic technical  indicator aims to overcome the lag of the traditional simple and exponential moving averages, the indicator automatically adjusting itself relative to the speed of the Forex market. Thus its name, dynamic indicator.

 

The indicator follows price movements closely in both a fast and a slow moving Forex market.

McGinley Dynamic Technical Indicator

McGinley Dynamic Indicator

 

Technical Analysis of McGinley Dynamic Indicator

 

This Indicator is better at avoiding whipsaws compared to the original moving average.

 

 

This McGinley Dynamic indicator is calculated using the formula:

 

Dynamic = D1 + (Price - D1) / (N * (Price/D1)^4)

 

D1 = previous value of Dynamic indicator

N = smoothing factor (of price periods)

^ = Power of

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Bullish, Buy Signals and Bearish, Sell Signals

 

McGinley indicator should be combined with moving averages to form a Forex trading system. This indicator should be used as the smoothing mechanisms where the moving average is choppy or ranging.

 

  • Bullish, Buy Signal- A buy signal is generated when price is crosses above the indicator.
  • Bearish, Sell Signal- A sell signal is generated when price is crosses below the indicator.

Technical Analysis of McGinley Dynamic Technical Indicator

Technical Analysis

Market Sentiment 2015:

Quantitative Easing(QE): This is when a Central Bank decides to start printing money to buy Bonds so as to stimulate Economic Growth.

ECB QE: ECB, Euro Zone Central Bank has started Quantitative Easing for Euro Zone so as to stimulate growth in the EU, devalue the EURO and also bring inflation up to around 2 %.

What it Means: This means the value of the EURO is going to depreciate against all other currencies. (Not at once, but gradually)

How Long will the QE Last: From March 2015 to September 2016.

Market Outlook: Very Bearish for EURUSD, GBPUSD, GBPJPY, EURJPY, AUDUSD (No Need For Technical Analysis).

Do Not Be Left by This Once in a Lifetime Opportunity: Open an account now and start selling Euros - ECB has got your back on this one - 1.1 Trillion Euros is What Has Been Set For This QE. - Others are already profiting - Read the article How to Fast Track Account Opening and Open an account now.

Strategy: Sell the retracements and use 1 Hour and M15 Charts to look for best entry and exit points.

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