Relationships between Price and Volume Trends and the Four Rules Affecting the Plotting of MIDAS Curves
Let's make a start by providing four possible relationships between a price and volume trend:
- Rising price trend + increasing volume
- Rising price trend + decreasing volume
- Falling price trend + decreasing volume
- Falling price trend + increasing volume
When applied to the MIDAS curves, these four relationships can be transformed into four simple rules:
- Rule #1: Rising price trend + increasing volume = MIDAS support curves are pulled up towards the rising price trend.
- Rule #2: Rising price trend + decreasing volume = MIDAS support curves are pulled down from the rising price trend.
- Rule #3: Falling price trend + decreasing volume = MIDAS resistance ...
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