Moving Averages and the Starting Point Ambiguity

This first issue applies equally to both the standard Midas S/R curves and the TB-F. This issue, which I call the Starting Point Ambiguity, relates to how one treats the price bar that is designated as the starting point of one of these curves; namely, should this bar be included in the calculation of the curve? The correct answer is yes.

Since a standard Midas S/R curve is a variant of the well-known volume weighted moving average, the S/R curves are easy to program with the high-level indicator scripting languages that come with most TA software packages. I've done it, and everyone I know who has attempted it has gotten it right, not falling to the wrong side of the Starting Point Ambiguity. ...

Get MIDAS Technical Analysis: A VWAP Approach to Trading and Investing in Today's Markets now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.