McGinley Dynamic 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 technical 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.
Trading Analysis and Generating Signals
This gold indicator is better at avoiding whipsaws compared to the original moving average 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 Trading Signals
McGinley Dynamic should be combined with moving averages to form a system. McGinley Dynamic should be used as the smoothing mechanisms where the Moving Average is choppy or ranging.
- Bullish, Buy Signal - A buy signal is generated when the price is crosses above the technical indicator.
- Bearish, Sell Signal - A sell signal is generated when price is crosses below the technical indicator.
Analysis in XAUUSD
Study More Courses and Tutorials:
- How Can I Trade MetaTrader 4 XAU USD Platform MetaTrader 4 User Tutorial Guide?
- XAU USD Patterns Candlestick Definition Explained
- XAU USD Patterns Analysis & Gold Technical Charts Analysis
- When Not to Trade XAUUSD
- How to Set XAUUSD Stop Loss Order
- How to Add On Balance Volume XAUUSD Indicator on Trading Chart in MT4 Software
- Principles of How Can I Draw Gold Trend-lines?
