Unlike moving averages such as Simple Moving Average or Exponential Moving Average, McGinley Dynamic avoids of most whipsaws and it rapidly moves up or down according to a quickly changing market. It needs no adjusting because it is dynamic and it adjusts itself.
// Based on formula from http://fxcodebase.com/wiki/index.php/McGinley_Dynamic // Unlike moving averages such as Simple Moving Average or Exponential Moving Average, // McGinley Dynamic avoids of most whipsaws and it rapidly moves up or down according to a // quickly changing market. It needs no adjusting because it is dynamic and it adjusts itself. study(title="McGinley Dynamic Average", shorttitle="McGinley", overlay=true, precision=6) len = input(14, minval=1) src = input(close, title="Source") mg = na(mg[1]) ? src : mg[1] + (src - mg[1]) / (0.6 * len * pow(src/mg[1], 4)) plot(mg, color=orange, linewidth=4)