McGinley Dynamic MT4 Stock Indexes Indicator and McGinley Dynamic Indices Trading Signals
Developed by John McGinley
McGinley Dynamic aims to overcome the lag of the traditional simple and exponential moving averages, the MT4 Indices Indicator automatically adjusting itself relative to the speed of the Indices Trading market. Thus its name, dynamic.
The MT4 Indices Indicator follows stock indexes price movements closely in both a fast and a slow moving Indices Trading market.
MT4 Indices Technical Indicator and Generating Indices Trading Signals
This MT4 Indices Indicator is better at avoiding whipsaws compared to the original moving average.
Calculated using the formula:
Dynamic = D1 + (Indices Price - D1) / (N * (Indices Price/D1)^4)
D1 = previous value of Dynamic MT4 Stock Indexes Indicator
N = smoothing factor (of stock indexes price periods)
^ = Power of
Bullish, Buy Indices Trading Signals and Bearish, Sell Indices Trading Signals
McGinley Dynamic should be combined with moving averages to form a stock indexes trading system. McGinley Dynamic should be used as the smoothing mechanisms where the moving average is choppy or ranging.
- Bullish, Buy Indices Trading Signal - A buy stock indices signal is generated when stock indexes price is crosses above the MT4 Indices Technical Indicator.
- Bearish, Sell Indices Trading Signal - A sell stock indices signal is generated when stock indexes price is crosses below the MT4 Indices Technical Indicator.
MT4 Stock Indexes Indicator