McGinley Dynamic
A moving average, developed by John McGinley, that automatically adjusts its own speed based on the relationship between price and the average itself.
The McGinley Dynamic, developed by market technician John McGinley, is a moving average that automatically adjusts its own speed based on the relationship between the current price and the average's own prior value, intended to track price more closely than a standard moving average, particularly during fast market moves.
It was specifically designed to address a documented weakness of standard moving averages: that a fixed-length average can lag badly or whipsaw unhelpfully depending on how fast the market is currently moving, a problem the McGinley Dynamic's self-adjusting formula aims to reduce. See Kaavon's dedicated McGinley Dynamic article for the full calculation.
Examples
- The McGinley Dynamic was specifically designed to track fast-moving markets more closely than a standard, fixed-speed moving average.
- Like KAMA, the McGinley Dynamic adjusts its own responsiveness automatically, rather than using a single fixed smoothing speed throughout.