Dynamic testing analyzes the dynamic behavior of code by executing it with different inputs and checking the outputs. There are two main types: black box testing which tests functionality without viewing internal structure, and white box testing which tests based on internal structure. Black box techniques include boundary value analysis, equivalence partitioning, error guessing, cause-effect graphing, and state transition testing. White box techniques include code coverage and complexity analysis. Dynamic testing can find errors not detected through static analysis but takes more time than static testing.