McGinley Dynamic Average — Indicator by bsharpe

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.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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// 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)