MIDAS Technical Analysis: A VWAP Approach to Trading and Investing in Today's Markets
by Andrew Coles, David G. Hawkins
Volume Periodicity
There's another part of Arms's work that's often very useful in judging the trends of a security, what he calls Volume Periodicity, described in his book, Volume Cycles in the Stock Market.16 It's another manifestation of the Volume Leads to Volume principle. Within Technical Analysis, there's a large body of work on cycles, all of which are time-based, and in my opinion represents a greatly underconstrained solution to the problem. This means that there are far too many variables available with which to fit the data. There are an infinite number of time periods, amplitudes, and phase relationships that the analyst may choose from, making it possible to find a combination of time cycles that will fit any data. Hindsight works ...
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