McGinley Dynamic (MD)¶
| Name | Type | Prerequisite | Use Cases |
|---|---|---|---|
| McGinley Dynamic (MD) | Trend/Adaptive | OHLC Data | Avoiding the "separation" of price and average in fast moves. |
Definition¶
An adaptive average designed to follow price more accurately than traditional MAs.
Mathematical Equation¶
\[
MD_{prev} + \frac{C - MD_{prev}}{k \cdot n \cdot (C/MD_{prev})^4}
\]
Special cases¶
- Maximum possible value: Unbounded
- Minimum possible value: 0
- Behavior: Follows the price, automatically adjusting its speed to minimize separation from price.
Visualization¶
Trading Significance¶
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Category: Trend/Adaptive
-
Use Case: Avoiding the "separation" of price and average in fast moves.