McGinley Dynamic Bitcoin Trading Analysis and McGinley Dynamic Bitcoin 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 btcusd trading market. Thus its name, dynamic.

The indicator follows btcusd price movements closely in both a fast and a slow moving cryptocurrency market.

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

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

Calculated using the formula:

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

D1 = previous value of Dynamic indicator

N = smoothing factor (of btcusd price periods)

^ = Power of

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

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

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

Technical Analysis