McGinley Dynamic Bitcoin Trading 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 trading price movements closely in both a fast and a slow moving bitcoin market.

Bitcoin Analysis & Generating Trading 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 technical indicator

N = smoothing factor (of bitcoin trading price periods)

^ = Power of

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

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

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

Technical Analysis in Bitcoin Trading