McGinley Dynamic XAUUSD Technical Analysis and McGinley Dynamic XAUUSD Signals

Developed by John McGinley

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

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

XAUUSD Technical Analysis and Generating XAUUSD Signals

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

Calculated using the formula:

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

D1 = previous value of Dynamic indicator

N = smoothing factor (of gold price periods)

^ = Power of

Bullish, Buy XAUUSD Signals and Bearish, Sell XAUUSD Signals

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

• Bullish, Buy XAUUSD Signal - A buy xauusd signal is generated when gold price crosses above the indicator.


• Bearish, Sell XAUUSD Signal - A sell xauusd signal is generated when gold price crosses below the indicator.

Technical Analysis