McGinley Dynamic Technical Analysis & McGinley Dynamic Signals
Developed by John McGinley
McGinley Dynamic aims to overcome the lag of the traditional simple & exponential moving averages, the indicator automatically adjusting itself relative to the speed of the market. Thus its name, dynamic.
The indicator follows trading price movements closely in both a fast & a slow moving market.
Technical Analysis and How to Generate Trading Signals
This indicator is better at avoiding whipsaws compared and analyzed to the original and initial moving average.
Calculated using the formula:
Dynamic = D1 + (Price - D1) / (N * (Price/D1)^4)
D1 = previous value of the Dynamic technical indicator
N = smoothing factor (of trading price periods)
^ = Power of
Bullish, Buy Signals and Bearish, Sell Signals
McGinley Dynamic should be combined with MAs to form a trading system. McGinley Dynamic should be used as the smoothing mechanisms where the Moving Average is choppy or ranging.
- Bullish, Buy Signal - A buy signal gets derived and generated when price crosses above indicator.
- Bearish, Sell Signal - A sell signal is derived and generated when price crosses below indicator.
Technical Analysis in XAU USD Trading
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