Trade Forex Trading

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.

McGinley Dynamic - McGinley Dynamic Technical Trading Indicator

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.

McGinley Dynamic Analysis in XAUUSD - McGinley Dynamic Indicator

Technical Analysis in XAU USD Trading

More Lessons and Tutorials and Courses:

Forex Market Traders Seminar Gala

Forex Market Traders Seminar

XAUUSD Broker