McGinley Dynamic Gold Trading Analysis and McGinley Dynamic Gold 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 xauusd market. Thus its name, dynamic.

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

XAUUSD Trading Analysis and Generating XAUUSD Trading Signals

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

Calculated using the formula:

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

D1 = previous value of Dynamic indicator

N = smoothing factor (of xauusd price periods)

^ = Power of

Bullish, Buy XAUUSD Trading Signals and Bearish, Sell XAUUSD Trading Signals

McGinley Dynamic should be combined with moving averages to form a xauusd 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 gold signal is generated when xauusd price is crosses above the indicator.
• Bearish, Sell Gold Trading Signal - A sell gold signal is generated when xauusd price is crosses below the indicator.

Technical Analysis