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

Using the TB-F

Now, back to our original problem, as illustrated in Figure 5.1. Let's assume we can't see this whole chart; and it is early 1998; that's where the hard right edge of the chart is. We know there have been two pullbacks, a minor one and a major one, but we don't know what comes next. Generating the proper TB-F curve, the one that fits the major pullback and ends in the future at the end of the trend, requires knowing in advance what the total duration of the trend will be. (“Duration” refers to cumulative volume, not time.) So, how can we proceed? The answer is to discover what that total duration is by trying a number of different guesses as to what that duration could be, and seeing what kind of TB-F curve each guess generates. ...