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:

  1. Rising price trend + increasing volume
  2. Rising price trend + decreasing volume
  3. Falling price trend + decreasing volume
  4. 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 ...

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

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.