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