McGinley Dynamic Stocks Technical Analysis and McGinley Dynamic Stocks 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 stock trading market. Thus its name, dynamic.

The indicator follows stocks price movements closely in both a fast and a slow moving stock trading market.

Stocks Technical Analysis and How to Generate Signals

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

Calculated using the formula:

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

D1 = previous value of Dynamic indicator

N = smoothing factor (of stocks price periods)

^ = Power of

Bullish, Buy Stocks Signals and Bearish, Sell Stocks Signals

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

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

Technical Analysis in Stocks Trading