McGinley Dynamic

L’idée en termes simples

Fixed-speed averages are too slow in fast markets and too nervous in calm ones. McGinley's line changes its speed with the distance between price and line, so it rarely gets left behind.

Mode de calcul

Each candle, the line moves towards the close by the gap divided by N × (close ÷ line)⁴. A big gap makes the factor smaller, so the line moves faster.

MD = MD₋₁ + (close − MD₋₁) ÷ (N × (close ÷ MD₋₁)⁴)

Comment l’utiliser

• As a trend filter and dynamic support or resistance.
• Instead of an EMA where you want fewer whipsaws.

Tirer des conclusions

• Price above a rising McGinley line: uptrend; below a falling one: downtrend.

Points de vigilance

• The line is smooth, not predictive: wait for the price to confirm a break.

Un peu d’histoire

Created by John R. McGinley, a market technician, and published in 1990.