McGinley Dynamic Energies Technical Analysis & McGinley Dynamic 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 energies market. Thus its name, dynamic.

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

Energy Technical Analysis & How to Generate Trading Signals

This energies technical indicator is better at avoiding whip-saws compared to the original moving average.

Calculated using the formula:

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

D1 = previous value of Dynamic technical indicator

N = smoothing factor (of energies price periods)

^ = Power of

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

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

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

Technical Analysis in Energy Trading