McGinley Dynamic Indicator

Modified on 2011/07/25 08:59 by Eugene — Categorized as: Community Indicators

Syntax


public McGinleyDynamic(DataSeries ds, int period, string description)
public static McGinleyDynamic Series(DataSeries ds, int period)

Parameter Description

ds	Data series
period	Lookback period

Description

The McGinley Dynamic Indicator is a moving average with a volatility filter designed to further smooth out the price action. It would be used similar to a moving average.

Interpretation

Use it like you would use other moving averages.

Calculation

The indicator is calculated using the following simplified formula:

Yesterday's EMA + ( ( Today's close - Yesterday's EMA ) / ( Today's close / Yesterday's EMA * 125 ) )

Example

This example compares McGinley Dynamic Indicator with a simple moving average of the same period:


using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;
using Community.Indicators;

namespace WealthLab.Strategies
{
	public class MyStrategy : WealthScript
	{
		private StrategyParameter paramPeriod;
		
		public MyStrategy()
		{
			paramPeriod = CreateParameter("Period", 10, 2, 100, 2);
		}
		
		protected override void Execute()
		{
			int period = paramPeriod.ValueInt;
			McGinleyDynamic mcgd = McGinleyDynamic.Series( Close,period );
			PlotSeries( PricePane, mcgd, Color.Blue, LineStyle.Solid, 1 );
			PlotSeries( PricePane, SMA.Series( Close,period ), Color.Red, LineStyle.Solid, 1 );
		}
	}
}