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MIDAS MARKET ANALYSIS
Modified VWAP Methodologies

  MIDAS New Research Area: Research Essays with Charts (Flash Galleries)

 MIDAS Introductory Area: Two introductory MIDAS Essays

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Essay Two page 1

Market Adaptability


 MIDAS Introduction Area: Two Essays introducing the MIDAS Approach


Immediately below there is a brief description of the two main introductory essays mentioned on the Home page. Newcomers to MIDAS should ideally purchase the book but Essay One is also recommended reading. Essay Two, while also directed at beginners, is targeted at more advanced MIDAS users. It places the main developments in the book and the articles in a concise summary overview with special emphasis on the several generations of curves that have been created during this new phase of the MIDAS project.


  MIDAS New Research Area: Essays with Flash Gallery Charts


 At the time of rewriting this page in December 2013, several new essays are in preparation. Information concerning these research essays together with links can be found beneath the initial presentation of Essay One and Essay Two.



Modifications for intraday analysis and secular degree timeframes, modifications for varieties of market and varying market conditions, modifications for pronounced or rapidly changing volume trends, and modifications for new alternative volume options, including FX tick data and futures open interest.


Essay One: An Introduction to VWAP and MIDAS - © Andrew Coles


This first essay, with significant improvements and newly updated charts, is reproduced from the previous MIDAS website and follows immediately. I (Andrew Coles) wrote this essay on the previous website with newcomers to MIDAS in mind as well as those requiring a refresher. It essentially covers the MIDAS system as utilised by the physicist and technical analyst, Paul Levine, PhD.


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Essay Two: MIDAS curves and MIDAS Indicators: An Overview - © Andrew Coles


The second essay, unique to this website and accessible here among other links, is written by Andrew Coles and brings further clarification to how the MIDAS approach has been evolved by Andrew Coles and David Hawkins. In retrospect, this evolution should have been outlined in more detail in the introduction to the MIDAS book whereas Andrew Coles had merely referenced this evolution in the following remarks:


However, in many respects the technological changes that have affected the markets since [Levine’s] time on the hardware and software fronts mean that approaches to using the MIDAS method have inevitably evolved too, especially for contexts such as day trading and new makets. It has therefore been important to retain the basic authenticity of Levine’s teachings while allowing the approach sufficient flexibility to apply to these new areas, including the development of new MIDAS-based indicators.




 

Essay 3:Introducing the MIDAS/AC Normal Deviation Bands - © Andrew Coles


This is a new indicator completed by Andrew Coles in December 2013. Essay Three, covering the indicator,

was written for the site by Andrew Coles in December 2013. At the present time this work is not being

published elsewhere.


The development of the indicator was motivated by noticeable limitations in the MIDAS Standard Deviation

Bands, the topic of Andrew Coles’ Chapter 15 of the MIDAS book. Due to the formula MIDAS Standard

Deviation Bands move away from price too rapidly and too extensively. As a result, their application has been

restricted to rare chart patterns with widely oscillating price movements known as Broadening Formations. The only other price pattern of relevance to the indicator is a rapidly moving, very angular price movement, usually occurring after breakouts but also found in larger zigzag formations. However, even here great care must be taken in the plotting of the indicator otherwise the problem of the bands fanning out too quickly and too far remains a major issue. Moreover while Broadening Formations are fairly rare, their volatile and increasingly widening ranges means that fading them, even with a fairly robust MIDAS curve, is challenging both technically and emotionally. As a result MIDAS Standard Deviation Bands have limited practical utility.  


It would be far better if an alternative to the MIDAS Standard Deviation Bands could be developed that can be applied much more extensively to near-normal trendlike price moves. While Andrew Coles’ MIDAS/AC Displacement Channel is suited for sideways moving markets and lightly trending conditions, we shall see that the new indicator has a significant role to play in widespread conditions not suitable for the MIDAS/AC Displacement Channel and especially not for the MIDAS Standard Deviation Bands. For the moment this work will not be published outside of this website. A completed essay on the new indicator can be found via the following link.


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Essay 4: Introducing MIDAS/AC Quadrating Price Levels - © Andrew Coles


Completed by Andrew Coles in January 2014 (an essay will follow shortly below), this indicator is inspired by but not based on standard Pivot Points. The indicator adapts to four key variables: the higher timeframe chosen (daily, weekly, etc) for the indicator’s outer levels; the intraday timeframe chosen for the indicator’s inner levels; the volume direction; and the direction of the intraday trend. The indicator applies to all time frames and is especially suited to intraday charts. Like my other MIDAS indicators, this indicator can also be constructed from various generations of curves, including Gen-2 curves, which means that this indicator, like the others, can also be applied to the volumeless forex markets.


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Essay 5: Catalogue of MIDAS Curves Except Fourth Generation (Gen-4) Curves - © Andrew Coles


A principal aim of the MIDAS project has been to develop an independent approach to financial market analysis with unique standalone indicators available for every type of market condition while also offering information not available from other technical indicators and systems. This essay by Andrew Coles, in parallel with Essay Two (where there is also a detailed discussion of MIDAS curves without charts), consists of a chart-based overview of all the MIDAS curves except Gen-4 curves  


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Essay 8: Backtesting Atypical Applications of the MIDAS Topfinder/Bottomfinder Indicator - © Amir Naser Hojati & Andrew Coles


After correspondence with Andrew Coles, this essay has been prepared by Amir Naser Hojati, a lecturer at The Institute of Economic Research And Development at the University of Tehran. While teaching MIDAS techniques at the Institute, Amir has backtested a slightly unorthodox use of the Topfinder/Bottomfinder for day trading futures (forex, stock indices, and commodities). Although we would not ordinarily recommend unorthodox uses of indicators, Amir has developed a consistent methodology and trade-management. Amir would be an active member of the forum if a final decision is taken to develop it.


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Readers with a fairly detailed understanding of MIDAS would have picked up in subsequent chapters on how this evolution had developed over the course of the book as well as in separate article publications. However it was sometimes asking a little much for those with less knowledge of MIDAS to appreciate to the same extent how certain ideas and techniques were changing and, with them, the opportunity for new indicators. Andrew Coles attempted to address this issue in a long blog post on the previous site. Unfortunately this post (along with most of the previous site’s content) is now unavailable. The aim of the second esssay is to address this loss in a more permanent format.


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Essay 7: Catalogue of all Six MIDAS Indicators with Flash Charts - © Andrew Coles


With the emphasis on the MIDAS project resulting in an independent approach to financial market analysis on the basis of unique standalone indicators capable of assessing every type of market condition, this essay by Andrew Coles consists of a chart-based overview of all the MIDAS indicators developed to date (Spring 2014). Essay Two mainly concentrates on the MIDAS curves so this Essay uniquely on the site at the present time focuses on the MIDAS indicators.


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MIDAS Orientation - Essays








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Essay 6: Separate Essay on MIDAS/AC Fourth Generation (Gen-4) Curves - © Andrew Coles


This essay, a separate study of Fourth Generation (Gen-4) Curves, is now necessary because of the extremely large domain of financial market and economic datasets to which Gen-4 curves can be applied. Gen-4 curves can be fitted to inflection points that are hidden to, or out of reach of, standard MIDAS curves, resulting in important support/resistance curves that can broaden technical analysis significantly and/or create unique trading and market timing systems that are impossible to duplicate with other indicators.


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