McGinley Dynamic Analysis and McGinley Dynamic Trade 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 market. Thus its name, dynamic.

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

Stock Analysis & How to Generate Signals

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

Calculated using the formula:

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

D1 = the previous value of the Dynamic indicator

N = smoothing factor (of price periods)

^ = Power of

Bullish, Buy Trading Signals and Bearish, Sell Trade Signals

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

• Bullish, Buy Trading Signal - A buy trade signal is generated/derived when stock price is crosses above the indicator.
• Bearish, Sell Signal - A sell stock signal is generated when stock price is crosses below the trading indicator.

Analysis in Indices Trading

Study More Topics and Lessons:

• What's UKX100 Spreads? UKX100 Bid Ask Spread
• Index Trade Identify Flag Setup
• How Can I Trade SWI20 in MT4 Software Platform?
• Where to Find SWI20 in MT5 Software Platform
• MACD Center-line Crossover Strategy
• Example of How to Know When a Stock Index Down Trend is Starting
• Pivot Points Breakout Index Indicator
• US30 Indices Strategy and US30 Forex Strategy
• Where is Nasdaq on MetaTrader 4 Platform?
• How to Add Moving Average Oscillator Indicator on Stock Index Chart