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

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

by Andrew Coles, David G. Hawkins
May 2011
Intermediate to advanced
464 pages
13h 30m
English
Bloomberg Press
Content preview from MIDAS Technical Analysis: A VWAP Approach to Trading and Investing in Today's Markets

An Interesting Mathematical Observation

As we've observed here and in the previous chapter, when fitting a topfinder to an accelerated uptrend, a smaller value of D raises the curve, while a larger value lowers it. (The converse applies to bottomfinders fitting to accelerated downtrends.) It's interesting to examine how far down the TF curve can be driven by increasing D. Look at the formula for e in the previous chapter. In the limit when D becomes infinitely large, the denominator of the formula becomes 1, and e becomes d. This means the TF curve becomes S1 (assuming, of course, you start both curves from the same point with the same price data). So, the lowest you can push the TF curve is to make it coincident with S1; it can never be any ...

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Publisher Resources

ISBN: 9781576603727Purchase book