McGinley Dynamic Bitcoin 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 btcusd market. Thus its name, dynamic.

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

Bitcoin Analysis & Generating Signals

This btcusd technical 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 bitcoin price periods)

^ = Power of

Bullish, Buy Bitcoin Signals and Bearish, Sell Signals

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

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

Analysis in Bitcoin Trading