McGinley Dynamic Indicator

One of the major problems of moving averages such as the simple moving average is its lack of quick response to price. The higher the lookback period of the moving average, the slower the response to price movements. Other moving averages, such as the exponential moving average (more weight is given to the latest data), have tried to improve the responsiveness to market movement, but for many traders this is not enough.

McGinley Dynamic indicator tries to address this issue; it was designed to be more responsive to the underlying security changes.

Instead of a lookback period such as the ones you can find in moving averages, McGinley Dynamic indicator replaces it by a constant number that defines how closely the indicator tracks the stock or security. McGinley Dynamic adjusts itself depending on the speed and volatility of the market and it can be used in both fast/slow markets and long/short trading systems or strategies.

The function behind this indicator is called: "McGinleyDynamic":
Series: The time-series used to calculate the trading indicator. Example: close
Number: A constant value that specifies how closely the indicator tracks the index

Example:
a = McGinleyDynamic(close, 10);
Plot(a, "McGinley Dynamic Technical Indicator");

To simulate a 50-day moving average, you should set N to 60% of the moving average period (60% of 50 = 30).

McGinley Dynamic indicator was invented by a market technician, John R.McGinley, in 1990.

Technical Analysis

• MAC (Moving Average Contraction)
• Choppiness Index
• Day of week Average
• Market Timing Rules - Used to construct profitable trading strategies
• Translation into Binary Buy/Sell
• Positive trend breakout list (SMA200-based)
• Asset Allocation: Equal Weight Rebalanced Monthly
• RSI Conservative Screen
• Close Price Above Cursor
• Bollinger Bands and Fibonacci Ratios
• More trading objects...

Fundamental Analysis

• Next Split Ex-Date In Days
• Initial Jobless Claims - Historical data
• Company Net Income - US Stocks
• Historical economic calendar data by currency symbol
• Business Outlook Survey diffusion indexes
• Chicago Fed National Activity Index - CFNAI
• NAAIM Survey of Manager Sentiment
• Media sentiment alerts
• Broker Ratings & Recommendations
• Distress Index - Economic measure
• More trading objects...