Paul Levine referred to the quantitative laws that give rise to the standard S/R curves and TB-F curves as the “scientific” component of MIDAS. He called the “engineering” aspect the practical trading rules and techniques based upon the system. In the first part of this chapter I start with the quantitative laws governing the indicator. There is more on this topic in the opening pages of Hawkins' next chapter and Appendix A. Appendix C contains Bob English's TradeStation code for the TB-F.
As discussed in Chapter 1, the basic equation for the MIDAS S/R curves is as follows:
where
xi = cumulative volume on a given bar
yi = cumulative ...
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