MIDAS Technical Analysis: A VWAP Approach to Trading and Investing in Today's Markets

A Trading Range Turning into a Downtrend

The previous two examples both show how support curves are used to distinguish a trading range from an uptrend. On the complementary opposite side of things, one can use MIDAS resistance curves to look for the change from a trading range to a downtrend. Figure 2.8 is an example of this, where this chart is a continuation of Figure 2.7. On the left side of this chart, you can see the uptrend that started in Figure 2.7 at around a price of 12, going all the way up to a peak of 29.61. Curves 3 and 4 are the continuations of the same named curves from Figure 2.7. With hindsight, we can look at the whole of Figure 2.8 and see that price went into a consolidation for over two years, and then started a major ...