Summary

  • When confronted with price-volume relationships of the type discussed in Chapter 11, open interest can be used with MIDAS curves instead of “nominal curves.”
  • Despite the relatively low-key treatment of total open interest among current expertise on the COT report, it is sometimes essential to use it with the MIDAS tools when related volume trends aren't conducive to timing pullbacks so accurately. Here open interest curves work far better.
  • Curves created from total open interest are the only option when the MIDAS analyst is confronted with persistent negative numbers in the net positioning data. When total open interest is used with the MIDAS tools, it's highly dependable, and its signals are as good as any using the net positioning ...

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