McGinley Dynamic Analysis and McGinley Dynamic Signals
Developed by John McGinley
McGinley Dynamic aims to overcome the lag of the traditional simple & exponential MAs, the 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 and How to Generate Signals
This indicator is better at avoiding whip-saws compared to the original Moving Average.
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
Bullish, Buy Signals & 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 MA is choppy or ranging.
- Bullish, Buy Signal - A buy signal gets generated when the price is crosses above the indicator.
- Bearish, Sell Signal - A sell signal gets generated when the price is crosses below the indicator.
Technical Analysis in Forex
