McGinley Dynamic Average with Alternative Base Averages
Summary
The document describes a McGinley dynamic indicator based on a MetaStock-style formula, with an option to choose the underlying average type. The available variants use a simple, exponential, smoothed, or linear-weighted moving average as the base. This makes the indicator a configurable trend-smoothing tool rather than a single fixed calculation.
It is used like other moving averages, but the choice of base can materially change the plotted values. The document advises experimenting with the variants before relying on them for trading decisions. It provides no formula details, parameter guidance, market tests, performance evidence, or specific entry and exit rules, so it presents the indicator concept rather than a validated trading method.
Key ideas
- The indicator adapts a McGinley dynamic calculation around a selectable base average.
- The listed base types are simple, exponential, smoothed, and linear-weighted moving averages.
- It can be applied in the same general role as other moving averages.
- Different base choices can produce notably different indicator paths.
- The document offers no empirical evidence or complete trading rules, so use as a signal requires independent evaluation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.