Using MIDAS S/R Curves in Markets without Volume: The Daily and Weekly Cash FX Charts
Technical analysts describe the intermediate trend as lasting between six weeks and nine months and the primary trend as between nine months and two years. The ideal chart timeframe for looking at the former is the daily chart, while for the latter the weekly timeframe is best. To remind ourselves again, on neither of these two chart timeframes does the cash FX trader have volume data.
Taking the MIDAS S/R curves first, we have found that a solution to the problem of the absence of volume involves the insertion into the MIDAS formula of a nominal “1” unit of trading volume in lieu of an empty cumulative volume field.
This solution may seem counterintuitive and ...