V. 26:10 (32-45): The MIDAS Touch, Part 2 by Andrew Coles, PhD
Product Description
The MIDAS Touch, Part 2 by Andrew Coles, PhD
Last issue, we looked at what the MIDAS formula is and how it can be applied to intraday charts. This time, we’ll examine the intraday application of MIDAS more closely.
Previously, I discussed calculating the MIDAS formula, an acronym for “market interpretation/data analysis system,” and how it can be applied to intraday charts. This time, I will discuss some of my observations concerning the application of MIDAS more closely to intraday charts.
1. The role of the previous day’s high and low. In writing about MIDAS, the late technical analyst Paul Levine always identified the launch points of MIDAS as the swing highs and lows of trends, even though he stressed the importance of a launch point in terms of a major change in trading sentiment.
The latter is consistent with any swing high or low and not just with the swing highs and lows of the classic trend shapes we are familiar with. This is all to the good, since any competent daytrader knows that the concepts of support and resistance play a broader role in daytrading. Not only is there a daily trend (if any) to be concerned about, but there are also other key levels such as the previous day’s high, low, and close, as well as today’s open and current high and low. It is interesting to see how MIDAS curves behave in relation to these additional areas where there is a change to a new trading psychology.
Last issue, we looked at what the MIDAS formula is and how it can be applied to intraday charts. This time, we’ll examine the intraday application of MIDAS more closely.
Previously, I discussed calculating the MIDAS formula, an acronym for “market interpretation/data analysis system,” and how it can be applied to intraday charts. This time, I will discuss some of my observations concerning the application of MIDAS more closely to intraday charts.
1. The role of the previous day’s high and low. In writing about MIDAS, the late technical analyst Paul Levine always identified the launch points of MIDAS as the swing highs and lows of trends, even though he stressed the importance of a launch point in terms of a major change in trading sentiment.
The latter is consistent with any swing high or low and not just with the swing highs and lows of the classic trend shapes we are familiar with. This is all to the good, since any competent daytrader knows that the concepts of support and resistance play a broader role in daytrading. Not only is there a daily trend (if any) to be concerned about, but there are also other key levels such as the previous day’s high, low, and close, as well as today’s open and current high and low. It is interesting to see how MIDAS curves behave in relation to these additional areas where there is a change to a new trading psychology.
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $299.99! |
| Click Here to Order |