Andrew Coles, David Hawkins

MIDAS Technical Analysis (eBook, PDF)

A VWAP Approach to Trading and Investing in Today's Markets

• Format: PDF

Produktbeschreibung

This book provides a new, powerful twist to MIDAS technical analysis, a trading method developed by the late Paul Levine. The authors show how to employ MIDAS in trading, from recognizing set ups to identifying price targets. The book explains the basics of MIDAS before demonstrating how to apply it in different time frames. Further, it extrapolates how MIDAS can be used with other more conventional indicators, such as DeMark or moving averages. In addition to introducing new indicators that the authors have created, the book also supplies new computer codes.

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Produktdetails

• Verlag: John Wiley & Sons
• Seitenzahl: 464
• Erscheinungstermin: 23. März 2011
• Englisch
• ISBN-13: 9780470878798
• Artikelnr.: 37299785

Autorenporträt

ANDREW COLES, PhD, is an active trader running a private investment fund. He has a diploma in technical analysis from STA-UK and from the International Federation of Technical Analysts (IFTA). He is also a Certified Financial Technician (CFTe). He holds a master's and a doctorate and was a Postdoctoral Research Fellow of the British Academy. During his graduate and postdoctoral years, he worked at a number of institutions, including King's College (KQC) London, the Institute of Classical Studies, and Oxford University. He is the author of a previous book on the history and philosophy of science. DAVID G. HAWKINS is a successful full-time trader. He holds an MS in physics from Brown University, has taught physics at Roger Williams University, and has designed optical and ultrasound components for graphics, medical, and telecom systems. He presents on MIDAS and other technical analysis topics at AAII conferences.

Inhaltsangabe

Introduction xiii
Andrew Coles
Biographical Sketch, Paul H. Levine xix
David G. Hawkins
Acknowledgments xxi
Part I: Standard Midas Support and Resistance Curves
Chapter 1 MIDAS and Its Core Constituents: The Volume Weighted Average
Price (VWAP) and Fractal Market Analysis 3
Andrew Coles
MIDAS and Its Two Key Backdrops: VWAP and Fractal Market Analysis 4
The MIDAS Approach as a Genuine Standalone Trading System 20
Summary 26
Chapter 2 Applying Standard MIDAS Curves to the Investor Timeframes 29
David G. Hawkins
Definitions of Timeframes-The Triple Screen Trading Methodology 29
MIDAS Curves within the Triple Screen System 31
The Basic Behavior of the MIDAS Support/Resistance Curves 31
Equivolume Charting 32
What Price Should Be Used? 35
Support/Resistance Becomes Resistance/Support 35
Distinguishing an Uptrend from a Trading Range 39
The Foothill Pattern 40
A Trading Range Turning into a Downtrend 41
Tracking a Trend with a Hierarchy of MIDAS Curves 43
MIDAS S/R Curves for Entry Setups and Triggers 46
Same Launch Point, Different Timeframes 48
Special Start Points-The Left Side 50
Special Start Points-The Initial Public Offering (IPO) 53
Special Starting Points-The Down Gap and Its Dead Cat Bounce 55
Special Starting Points-The Highest R and the Lowest S 57
Summary 59
Chapter 3 MIDAS Support and Resistance (S/R) Curves and Day Trading 61
Andrew Coles
Multiple Trend and Timeframe Analysis 62
Part One: The MIDAS System as a Standalone Day Trading System 68
Part Two: Using the MIDAS System alongside Other Technical Indicators 82
Capturing Today's High and Low with Standard MIDAS S/R Curves 119
Summary 120
Part II: The Midas Topfinder/Bottomfinder
Chapter 4 The MIDAS Topfinder/Bottomfinder on Intraday Charts 125
Andrew Coles
Levine's Two Insights Governing the MIDAS Methodology 126
Part One: The Quantitative Features of the TB-F Algorithm 126
Part Two: The Engineering Aspect of TB-F Curves 135
Summary 159
Chapter 5 Applying the Topfinder/Bottomfinder to the Investor Timeframes
161
David G. Hawkins
A Most Unusual Indicator 161
The Basic Program of the TB-F 162
What is an Accelerated Trend? 162
Discovering the Topfinder/Bottomfinder 163
Using the TB-F 165
An Interesting Mathematical Observation 166
Fitting the TB-F Curve in Chart Views Other than Equivolume 167
Fitting to More than One Pullback 170
Nested TB-Fs: The Fractal Nature of the Market 178
TB-F Curves on Different Timeframes 180
Bottomfinders Are Sometimes Problematic 185
What Comes after a TB-F Ends? 187
Summary 188
Part III: The Longer-Term Horizon, Other Volume Indicators, and Broader
Perspectives
Chapter 6 Applying MIDAS to Market Averages, ETFs, and Very Long-Term
Timeframes 193
David G. Hawkins
Using MIDAS with the Indices-The S/R Curves 195
The Validity of Volume Data 198
Using MIDAS with the Indices-The TB-F 201
Using Exchange-Traded Funds Instead of Market Indices 202
MIDAS Applied to Long- and Very Long-Term Timeframes 205
Back to 1871 209
Inflation Adjustment 209
A Closer Look at the Very Long-Term 211
The Very Long-Term Horizontal S/R Levels 213
The Bavarian Deer Herd 214
What Can Be Said about the Very Long-Term Future? 215
Summary 218
Chapter 7 EquiVolume, MIDAS and Float Analysis 219
David G. Hawkins
The Basic Principle-"Volume Leads to Volume" 219
Why Does Price Projection Work? 221
The Connection between Price Projection and the Topfinder/Bottomfinder 223
Using Price Projection 224
Steve Woods' Float Analysis 227
Volume Periodicity 230
Summary 237
Chapter 8 Putting It All Together 239
David G. Hawkins
Trend Following 239
Calling Bottoms 249
Base Breakouts 251
Summary 254
Part IV: New Departures
Chapter 9 Standard and Calibrated Curves 257
David G. Hawkins
Discovering the Calibrated Curves 257
Examples 258
Summary 267
Chapter 10 Applying the MIDAS Method to Price Charts without Volume: A
Study in the Cash Foreign Exchange Markets 269
Andrew Coles
MIDAS and Cash Foreign Exchange Markets 269
A Comparison of the MIDAS S/R Curves Using Cash FX Intraday Tick Data and
Intraday Futures Volume Data 270
A Comparison of the MIDAS Topfinder/Bottomfinder Curves Using Cash FX
Intraday Tick Data and Intraday Futures Volume Data 273
Options in the Cash Foreign Exchange Markets for Higher Timeframe Charts
275
Options 1 and 3-Replacing Cash Forex Markets with Futures Markets or
Currency ETFs/ETNs 276
Using MIDAS S/R Curves in Markets without Volume: The Daily and Weekly Cash
FX Charts 277
Using MIDAS Topfinder/ Bottomfinder Curves in Markets without Volume: The
Daily and Weekly Cash FX Charts 280
Summary 283
Chapter 11 Four Relationships between Price and Volume and Their Impact on
the Plotting of MIDAS Curves 285
Andrew Coles
Relationships between Price and Volume Trends and the Four Rules Affecting
the Plotting of MIDAS Curves 286
Applying the Rules to Applications of Standard and Nominal MIDAS S/R Curves
290
Using Relative Strength or Ratio Analysis 294
Summary 296
Chapter 12 MIDAS and the CFTC Commitments of Traders Report: Using MIDAS
with Open Interest Data 297
Andrew Coles
An Overview of Open Interest and Open Interest Data Options 298
The Orthodox Interpretation of Changes in Open Interest 299
A First Look at Standard MIDAS Support/Resistance Curves with Open Interest
300
Pursuing MIDAS and Open Interest More Deeply 302
Concise Overview of the Commitment of Traders (COT) Report 302
Understanding the Main Players in the Legacy Report 303
Identifying the Key Players in the COT Report 304
Choosing the Appropriate Category of Open Interest 307
MIDAS and Total Open Interest 308
Choosing between Commercial and Noncommercial Positioning Data 312
Measuring the Market with Commercial Net Positioning Data 315
MIDAS and COT Report Timing 318
Comparing the Commercial Net Positioning Indicators with MIDAS using
Noncommercial Net Positioning Data 319
Additional Reading 327
Summary 328
Chapter 13 Price Porosity and Price Suspension: The Causes of these
Phenomena and Several Partial Solutions 331
Andrew Coles
Porosity and Suspension Illustrated 332
Identifying the Cause of the Two Phenomena 333
Solving the Problem of the Two Phenomena 334
Summary 342
Chapter 14 A MIDAS Displacement Channel for Congested Markets 345
Andrew Coles
The Problem: Mean Reversion in Sideways Markets 346
The Solution: Applying a Displacement Channel to Sideways Markets 348
MIDAS Displacement Channel Methodology 349
Trading Implications of the MDC 349
Additional Forecasting Implications 349
Additional Benefit: Applying the MDC to Trending Markets to Capture Swing
Highs in Uptrends and Swing Lows in Downtrends 350
Second Benefit: Applying the MDC to the Problem of Price Porosity 353
Comparing the MDC with the Moving Average Envelope 355
The MDC in Relation to Topfinder/Bottomfinder (TB-F) Curves 356
The MDC in Relation to the MIDAS Standard Deviation Bands 356
Features of the MDC in Relation to other Boundary Indicators 356
Summary 357
Chapter 15 MIDAS and Standard Deviation Bands 359
Andrew Coles
The MIDAS Standard Deviation Bands in Sideways Markets 360
The MIDAS Standard Deviation Bands in Uptrends and Downtrends 361
Band Adjustment for Shorter Timeframe Analysis 363
The MSDBs and Narrowing Volatility 363
Comparing the MSD with the MIDAS Displacement Channel 364
Alternatives to Standard Deviation 365
Trading with the MIDAS Standard Deviation Bands 368
Summary 370
Chapter 16 Nominal-On Balance Volume Curves (N-OBVs) and Volume-On Balance
Curves (V-OBVs) 371
Andrew Coles
On Balance Volume for the Uninitiated 371
Nominal-On Balance Volume Curves 373
The Dipper Setup 377
Volume-On Balance Volume Curves 377
Further Chart Illustrations 378
Summary 381
Chapter 17 Extensions, Insights, and New Departures in MIDAS Studies 383
Andrew Coles
MIDAS Curves and Volume-Based Oscillators 384
Correlation Analysis as an Effective Overbought/Oversold Oscillator 389
The Contributions of Bob English 391
Summary 400
Appendix A Programming the TB-F 403
David G. Hawkins
Appendix B MetaStock Code for the Standard MIDAS S/R Curves 411
Andrew Coles
Appendix C TradeStation Code for the MIDAS Topfinder/Bottomfinder Curves
413
Bob English
Notes 417
About the Authors 433
Index 435