A Comparison of the MIDAS Topfinder/Bottomfinder Curves Using Cash FX Intraday Tick Data and Intraday Futures Volume Data

Turning to the topfinder/bottomfinder (TB-F) indicator, Figure 10.3 covers half of the 24-hour trading session of November 2, 2009, in the cash markets in the same 5m chart format. Between 2:00 P.M. and 7:00 P.M. GMT the market rose parabolically for an hour before falling back swiftly to the same proximate level in a similar price move. This acceleration of the trend both up and down is a textbook application of the TB-F to both sides of the trend.

FIGURE 10.3 A sudden parabolic uptrend in the cash market followed by price swiftly returning to a similar level.

The duration (cumulative tick volume) of the topfinder is 70,000 ...

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