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McGinley Dynamic

LSD+MDMA (Linear-regression Slope Divergence, McGinley Dynamic)Long XRP@8000: Divergence of M cGinley D ynamic MA Oscillator from L inear R egression S lope. On Chart - Left: Past incidents of divergence from regression slope - Right: Detailed set of oscillators used by the MDMA oscillator to calculate final normalized differential oscillator In theory the more differential oscillators diverge the stronger the signal. We also found that combining both would give sharper results under administered conditions. ------------- "In art he, Thoth, was often depicted as a man with the head of an ibis bird"
Long
by duot
BTC/USD 4H/1D charts (12/10/2018)Good morning, traders. Bitcoin's move out of the local TR yesterday had a lot of emotional traders on CT upset as they were/are sitting short. This move also pulled price above the descending channel that price has been in since the $4000s and back into the larger TR. Currently, price is hovering around the channel's resistance as well as the bottom of that larger TR. This should be the BUEC/LPS on the local TR as well as possibly the Test of the Spring on the larger one. Based on the blue symmetrical triangle and the flagpole leading to the current flag, price should have a move up to the $3760 area. This would bring it to the equilibrium of the larger TR and expected LPS zone. Price has followed the path I outlined Friday as I was looking for a move to the top of that channel, at the least, followed by "a Test back down toward the bottom of the TR at around $3475." Price wicked down a bit further to $3441.81 but, nonetheless, it has followed that path. This recent move down is on much lighter volume than the previous which would make it a successful Spring and Test, so the upside target mentioned above should be in play now. This being as it is, this could've just been an ST which means we may still see a Spring after the move toward the top of the TR. This would align with some of the EW calls for one more lower low toward $3000, but it may not be required. We will have to continuing watching price action and volume as the targets play out. The 1D shows price in the red descending wedge, suggesting a move back toward the top of it. That would give price a target that is similar to the patterns mentioned above. More importantly, a close above the wedge's resistance would set up a new target of $4950, and reaching that target would confirm the double bottom and it's target would be around $5430 as stated below. 1D RSI is just now attempting to push out of oversold once more. As pointed out last week, bullish divergence had been forming on it over multiple days, so this move up shouldn't be a surprise to anyone. The 4H chart shows price sitting just under the McGinley Dynamic. As always, a close above it increases the odds of continued upward momentum. Friday, I also mentioned how this move down could be printing a double bottom. This pattern won't be confirmed until we see the daily close above the swing high at $4409. So, until then, it is just a possibility. The target based on that pattern would be $5430, which takes price right up to resistance. What happens after that depends on supply and demand. As long as demand is greater than supply, price will press through that level which would bring up the 2018 TR as the target. If price cannot do this, then we will continue looking lower for the targets mentioned throughout last week's other analyses. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSD
by Chris_Inks
Using/Delaying McGinley Dynamic seeding to chart parabolicsc.mql5.com In summary: McGinley believed moving averages are not supposed to be used as a trading signal, and instead identify the main trend. The formula is designed to go slower when price is trending up, and faster when price is trending down, to mimic how investors react to market movements. This does not work when an asset starts at a low price then rises astronomically. Unless Gann and friends are right about markets having full cycles, I don't believe bitcoin will be under $100 any time soon. Therefore x bars are ignored to give a usable McGinley Dynamic. As a trend identification tool, the McGinley Dynamic will trail far behind during forceful uptrends. The utility created here is based on the assumptions that: Less the extremely parabolic assets, an uptrend will retrace eventually to the McG, and the trader using McG understands that the moving average trails far away to keep a trader secured in position by slowing down for movement upwards The trading strategy employed is not based solely on moving averages Like all moving averages, McG will always suffer in terms of giving clear trading signals when the trend is too strong, too weak, too volatile, etc. vs a coincidental/leading indicator Length chosen should be 60% of your chosen MA to account for lag. In this case, a McG of 15 is equal to a 25 EMA (as TradingView uses EMA as the base MA for McG). Bars ignored should be before an uptrend, and only ignored up to where the MA is usable for the particular ticker. Something I have noticed is to be cautious when publishing ideas or sharing charts with indicators that weren't intended for sharing, especially for those who do not have the ability to publish invite-only scripts. While scripts are not meant to be copied straight off a chart, in rare cases there are ways to grab an indicator for self-use when the author did not intend such. As a first step preventive measure and self-incentive to keep scripts updated, it would be ideal to apply a 'expiration date' using the timenow function to published and nonpublished indicators that are accessible to the public. Although indicators are mostly derivatives of each other (except my stuff, I'm a real snowflake), there are many such cases in which seemingly 1:1 copies pop up, and there is no real way to identify who is in the right, if anyone even is. It is possible (and not uncommon) for indicators to be 'replicated' just by coincidence, so that should not be ruled out either. Example of McGinley Dynamic outperforming an EMA in the whipsaw department: Formula as described by Investopedia: MD = MD-1 + (Index – MD-1) / (N * (Index / MD-1 )^4) where MD-1 is the previous period's moving average, N is length, and index is price source. Adjustments can be made to the formula to optimize, but at what point do you scrap it and move on to other, more appealing methods? The wide berth that McG gives is not very useful over candlestick analysis for near instant reversal identification.
BNC:BLXEducation
by NeoButane
Bitcoin - Stuck in a channel between McGinley Dynamic and 200EMAAfter repetitive attempts to rise upwards through the 200EMA, BTC is now using the (2017) 0.382 Fibonacci green zone as support which strengthening by aligning with the (Current) 0.236 Fibonacci and the McGinley Dynamic, A persistent strong price level that always shown to be quite resilient in the previous attempts. The McGinley Dynamic has proven to be useful in the current trading environment as to avoid spikes in volatility/price separation while also becoming a "layer" of support which Buy Positions are obviously placed behind (last two breaks have been rebounded sharply with volume). Knowing that, places BTC within a channel support of the McGinley Dynamic (no one wants their $$$ doing the hard work to break through support/resistance's lined with buy points) and the consistent resistance of the 200EMA (No catalyst to sustain price above this level), so we have a stalemate, at least for the time being. Aggressive trading may change that. What the above graph shows is that traders are primary using the Daily, Fibonacci and EMA for long term direction, McGinley Dynamic for Buy Positions along with MACD, RSI for trend and volume along with the Ichimoku Cloud, in which Senkou B rejects any entry, quite strongly to be precise. If your looking for entry/exit points, either side of these indicators (McGinley/200EMA) would be great place to start, but usually in times of indecision... where the Lion's in play, watching is safer then playing. Will keep updating in regards to the exit of this channel, in which could provide possible future direction, as a break in either indicator will effect a significant shift in the overall trend direction. CerealTrader BTC is seeing some tough times , so I should write this: ***Education Purposes only***
BITFINEX:BTCUSD
by CerealTrader