McGinley Dynamic Gold Trading Analysis & McGinley Dynamic Trading 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 trading price movements closely in both a fast and a slow moving market.

Trading Analysis & Generating Trading Signals

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

Calculated using the formula:

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

D1 = previous value of Dynamic technical indicator

N = smoothing factor (of trading price periods)

^ = Power of

Bullish, Buy Trading Signals & Bearish, Sell Trading Signals

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

• Bullish, Buy Gold Trading Signal - A buy signal is generated when price is crosses above the indicator.
• Bearish, Sell Gold Trading Signal - A sell signal is generated when price is crosses below the indicator.

Analysis in XAUUSD Trading